While check payments may not be as popular as they were before the digitization of banking, there are still a few institutions that make payments this way. Data shows that one in 20 non-cash payments take place via check, which means there is a probability you might need to cash one someday.
The process of depositing checks into a bank account is mostly straightforward, and even more so through mobile banking. But not everyone wants to or even can deposit a check into their account. Some of the reasons you may not want to include:
- The high costs
- It's a frozen account
- You don't have an account
- You're required to travel to the bank
- The time it takes for a check to clear
- Hours spent in lines waiting at the bank
- You may not be able to issue checks through your account type
Also, some traditional banks may not offer mobile options for cashing your check, which makes check-cashing apps all the more appealing.
Ways to deposit and cash a check online without a bank account
Several financial services offer a simplified route to check deposits and cashing. Some of the more well-known options on the market include:
Netspend
For users of Netspend Classic App, users are able to load checks into their account with the mobile check load feature. The mobile check load option allows you to upload your check to the app simply by taking a photo of it. These offerings ensure that everyone has access to a check cashing service, even if they don't have a traditional bank account. While check loading with the regular waiting period is free, there is a charge of 2% of the check total, with a minimum of $5, for expedited checks.
BrinksArmored Account
The BrinksArmored Account comes with a full suite of features and security benefits. One such feature is Mobile Check Capture1, letting you load checks into your BrinksArmored Account with the BrinksArmored mobile app. You can get the mobile app from the App Store or Play Store .
PayPal
PayPal prides itself in its year-round availability with its online check cashing service, which can make a difference if you need access to funds over the holidays. It offers check cashing at a minimum $5 fee or a 10-day waiting period, which may be no cost.
CashApp
CashApp is a mobile payment platform that offers the unbanked the opportunity to make and receive payments, save, buy Bitcoin, and pay their taxes. Its online check deposit service is free if you wait the regular clearance period or charges a fee of between 0.5% and 1.75% for instant clearance.
The Check Cashing Store
The Check Cashing Store app is a check-cashing service dedicated to cashing your checks. It also offers foreign currency, loans, and small business services.
Ingo Money App
With the Ingo Money App, you have access to your cash in minutes upon approval of your check. You choose where to deposit the funds, whether it's to your bank account, PayPal account, a prepaid card, or an Amazon gift card. Ingo Money offers two pricing models.
- Standard pricing —On payroll and government checks under $250, you pay a $5 fee, and for checks over $250, the fee is 2% of the transaction. The charge on all other checks is $5 for values under $100, or 5% for checks over $100.
- Ingo Gold Preferred pricing — Government and payroll checks under $500 carry a $5 charge and a 1% charge for values over $500. Other checks have a $5 fee on checks under $125 or 4% for checks over $125.
To qualify for Ingo Gold Preferred pricing, you need to do six or more transactions within a 90-day period. Ingo Money also facilitates mobile check cashing services for other financial institutions and apps.
Venmo
Venmo is best known for its check-splitting function, which allows you to share the costs of a night out with friends. However, it also offers additional services such as crypto payments, direct deposits, and debit and credit cards. It offers free online check cashing if you wait out the full clearance period. For a speedy clearance, expect to pay 1% or a minimum of $5 for payroll and government checks or 5% or a minimum of $5 for all other checks.
AnytimeCheck
You might want to pay and receive payments via check, which is what the AnytimeCheck app does. It's suitable for small businesses that don't want the hassles or risks of carrying paper checks, but still want the convenience of paying with checks. The app links to the financial institution of your choosing, where you'll receive and make payments from.
How to use online check cashing services
There are a few short steps to follow to cash your checks through an online cashing service.
Step 1
Download an app or access a check cashing service provider through the web browser. With most online check cashing services, you need to provide your full name, street address, date of birth, and government ID number.
Step 2
Endorse the check and head to the mobile check deposit section on the financial institution's app.
Step 3
Select the check deposit option and complete the information requested, which can include the date on the check, the amount, and the issuer.
Step 4
Use the photo option on the app to take a photo of the check and upload. You can use a scanner if you're using a computer.
Step 5
Submit your request. Approval of the check should take around three to five minutes, and if you selected the expedited service option, the funds pay directly into the depositing account selected.
These are also the steps to follow if you're wondering how to cash a cashier's check online without a bank account.
Potential fees and restrictions
Financial institutions don't process all checks the same way. For example, government and payroll checks tend to carry a lower cashing charge than other checks. The difference in costs can be quite significant.
Some of the more popular check cashing services charge around 1% to 2% of the cash value for expedited services on a government or payroll check. The same amount might attract a heftier fee of up to 5% of the value of the check for other checks.
You may also face certain restrictions when trying to cash your check online. Some of the reasons a financial institution may choose not to cash your check include:
- Errors —Institutions may choose not to cash a check with errors, as this creates a liability risk. Before attempting to cash a check, ensure that all the information is correct. This also includes incorrect endorsements.
- Check use violations —There are some rules in place to ensure that checks are used fairly and correctly. If a check violates these rules (e.g., post-dated checks), the institution can't cash it.
- Insufficient funds —The payer needs to have sufficient money in their account to honor the check payment. If they don't, the financial institution will return the check, otherwise known as bouncing the check.
- Risk and security concerns —Some transactions may carry added risk and security concerns, such as a lack of proper identification or payer track record. Fraudulent transactions, stolen checks, and stolen identities all factor into a financial institution's decision to cash a check, especially for an expedited request.
- Deposit history —If the account holder has a history of banking bad checks, the financial institution may no longer wish to extend this service to them.
- Deposit amounts —Some online check cashing services restrict their cash deposit limits. Some may request deposits of more than $5, but no more than $5,000.
Access to your money through online check-cashing services
When you get paid by check, waiting several business days for it to clear can be challenging for your finances — especially if you have bills to pay. Online cashing services can slash the time it takes to cash a check to as little as three minutes if approved.
As long as institutions use checks as a means of payment, there will be a need for online check-cashing services. This is because people want to cash their checks instantly without leaving the house.
