When we are talking about check cashing services one of the most frequently asked questions is to find out how much check cashing stores charge you for cashing your check.
Well, as much as I would love to give you just one simple answer that covered everything, the truth of the matter is that there is no single cut and dry answer.
The reason for that is actually pretty simple.
You see, the rates (or percentages) that check cashers are allowed to charge their customers are in part determined by state and local laws.
Because of that, check cashing rates can vary state-by-state and even city-by-city depending on how the local laws and ordinances are written.
That having been said, there are some general guidelines out there that can help you understand how much money a check casher will charge you for cashing your check.
Typically Speaking Check Cashing Rates Are…
When we look at the average check cashing rates around the industry they are typically between 2.5 and 5% of the check’s total value depending on what type of check it is and that particular store’s standard rate table.
If you want to figure out what that means for you, the math is pretty simple.
Take the total value that the check is written for and multiply it by 5%, which is 0.05.
In other words, if the check you want to cash is written out to you for $100 you would take 100 and multiply it by 0.05 which comes out to 5.
In other words, the check casher will charge you $5 to cash that $100 check if their rates are on the upper end of the average of 5%.
That having been said, for most checks the average is much closer to 3%. So if you wanted to figure out how much they would charge you if their check cashing rates were in the middle of the average at around 3% you would take the same $100 (or 100) and multiply it by 0.03.
When you do that you will end up with 3, or $3. So under that percentage it will end up costing you $3 to cash that $100 check which is really pretty reasonable.
Check Cashing Tip
If you call around to most of the check cashers in your area you may find that they don’t want to state the rates that they charge over the phone.
This isn’t because they aren’t being honest or forthright but rather because it prevents their competitors from price checking them and under cutting everyone.
But there’s really no harm in trying either. So what you can do is go to Google.com and lookup “Local check cashers” and Google will provide you with a list of check cashers in your area along with their phone numbers.
You’ll want to go through and give them a call to check their rates.
If that doesn’t work, then you might just want to actually go to the locations and shop their rates. This is particularly true if you are thinking about cashing checks regularly as sometimes you can end up saving a lot of money by comparison shopping the various check cashiers in your area.