How Do You Cash a Check?

One of the most common banking activities that people regularly use is check cashing. But do you understand the various ways how to cash in a check and how to handle issues that may arise with check cashing?

People often need to cash checks they receive from their employers and that they receive as gifts or from a government agency. Yet, there are a few different viable check-cashing methods, including banks, credit unions, ATMs, and mobile banking apps.

In this Tower Loan article, we provide an overview of how to cash a check and the considerations to keep in mind before choosing a check-cashing method.

Understanding How Check Cashing Works

When you deposit a check, a bank verifies the validity of the check and the funds available. Banks look at a check’s date, payee name, amount, and signature. Then, the bank sends the check to the issuing bank, and that issuing bank transfers the funds to the bank that received the check.

You can typically get at least some of the money by the next business day, and the rest of the funds are available by the second business day. Banks hold checks before funds are available to confirm their validity, and you can review the deposit receipt for a fund’s availability date.

Processing time could be delayed based on the type of check and your account status. A bank hold could be extended if your account is new or overdrawn. You may contact your bank to inquire about a hold and if an override is available to get your money quicker.

3 Main Ways to Cash a Check

How do you cash in a check? There are three main approaches to choose from when cashing a check.

1. In Person at a Bank or Credit Union

The most traditional check-cashing approach is to visit a bank or credit union. The steps involved are to complete a deposit slip, endorse the back of the check, and hand the check to a teller. You’ll get a receipt for your deposit and learn from the teller when funds are available to use.

Check deposits are available to spend after one to five business days. Bring a photo ID to cash a check in person. This approach requires you to make a trip to an institution but offers the benefit of asking questions about the process and does not normally require a fee.

2. At an ATM

Can you cash a check at an ATM?

Yes, you can cash checks at an ATM, depending on your bank’s rules. You’ll need to find a check-accepting ATM and follow the steps for ATM check deposits. Be mindful of your surroundings while inserting your ATM card and entering your PIN to log into your bank account. 

You’ll choose the deposit option on the ATM, insert your check, and follow the prompts. ATM check deposits may take longer than in-person banks and deposit limits may apply. Federal law allows up to five days to make funds available.

3. Using a Mobile Banking App

Another option for how to cash a check is to use a mobile banking app. You’ll need to download a bank app and sign in with your account to get started.

Follow the steps to scan your check and submit a check deposit. Make sure to keep your paper check until the funds clear. Common mistakes include entering the wrong check amount and submitting an unclear photo of your check on the app. Once your money is available for use, shred your check for security purposes.

Alternative Places to Cash a Check

How do you cash in a check in other ways? Rather than visiting your own bank for check cashing, you could visit the bank that issued the check to cash it. However, you could incur fees if you are not a customer there.

Some major retailers and grocery stores cash checks, such as Walmart and Kroger. Fees and amount limits may apply, so understand those rules before you visit a local store.

There are also prepaid debit cards that you can use for check cashing. Using a mobile app, you can remotely deposit a check onto a prepaid debit card. However, be aware of any fees associated with this service, as you could face a minimum fee of $5 or up to 5% of the check amount for this convenience.

Another option is to visit a check-cashing store or payday lender’s office. You might be able to walk out with cash immediately and have no holding period. However, you’ll likely have to pay high fees for immediate access.

Fees and Costs: What to Expect

Different check cashing options come with different fees. The quickest access to cash is a check cashing service, but this requires a fee. Prepaid debit cards and retail stores also often have fees. If you can wait a few days for your cash, deposit it at your bank, ATM, or mobile app.

Special Situations When Cashing a Check

If you have an especially large check, know that your bank may place a longer hold to verify the large amount. Old and stale-dated checks may delay the processing time. Business and personal checks are typically good for six months from the issue date.

If you are trying to cash a check made out to someone else, additional rules may apply per your bank’s policies. 

Safety Tips for Cashing Checks

Are you wondering how to cash out a check safely to protect your money? Here are some safety tips from the financial pros at Tower Loan:

• Avoid high fee check cashing services when possible
• Watch out for scams, like someone sending you an amount larger than owed and requesting the difference via gift card
• Keep your banking app passwords and PINs secure
• Consider a personal loan if you need money faster

Frequently Asked Questions (FAQs)

If you have questions about how to cash a check, check out these FAQs. You can also visit a Tower Loan branch near you to learn more.

How Long Does It Take for a Check to Clear?

Typically, it takes one to five business days.

Can You Cash a Check Without a Bank Account?

Yes, without a bank account, you can cash a check at the issuing bank, a retail store, an ATM, or by loading the money onto a prepaid debit card.

What Happens if You Lose a Check Before Cashing It?

If you lose a check, contact your bank to request a “stop payment” so no one else can cash it. Then, inform the person who issued the check and request a replacement check.

Can You Deposit a Check Online and Cash it Elsewhere?

Yes, you can deposit a check online through your bank’s mobile app and then retrieve that money later at a bank branch or ATM.