An Introduction to Check Cashing Services
Definition?
Check cashing companies specifically cash out checking funds and pay the cash value. Business or work related checks are often en-cashed and agencies may or may not accept personal checks.
Accepted
Accepted checks will vary from one service provider to another. But most checks accepted are as follows:
1. Payroll checks
2. Personal checks
3. Checks payable to a company
4. Cashier's checks
5. Money orders
6. Government checks
7. Income Tax Refund Checks
8. Insurance settlement checks
Fees
The service is available with a corresponding fee ranging from 3-5% or as low as 1% of the total amount to be cashed. For example, a $1,500 salary check can be cashed out with a $45 fee in case the check cashing service provider charges 3-5%. If the fee is only at 1%, the individual pays $15 out of the total amount.
The fee may be relatively lower in banks as many charge a default amount of $10 for their specified minimum bracket amount. Some financial institutions may also allow direct deposit of checks into an individual's bank account so the funds are automatically deposited to the bank account.
Application and Requirements
In order to cash out, the individual must present proof of identity. The same requirements are often needed in banks. However, most banking institutions are rigid and may need a specific period to clear out checks. This ranges from 3 days up to 2 weeks. With check cashing services, one can conveniently cash out faster, even almost immediately. There is often no need for a bank account and your funds are not withheld for any reasons. You won't have to wait in line as well, especially if you have already accomplished forms over the web.
You may avail of check cashing through physical locations and may also apply online. Over the web, you may fill out the application form in a matter of minutes. You will need to physically drop by a store location close to you. Branches are posted on the website as well. Most branches are open for business even when most banks aren't. Many are open during weekends including Sundays and holidays.
Loans
Most check cashing services also offer loans including cash loans and payday loans. In fact, a check holder may apply for an advanced loan using the upcoming funds expected from his or her paycheck. This is of course available with a corresponding fee.
image credit: David Goehring/Flickr
Read more: https://articlesblogsite.webnode.com/news/first-blog/