You can deposit a check at a check-cashing service, prepaid card issuer, or retail store—but each route costs money and offers different protections
If you don't have a bank account, you have three main ways to turn a check into cash: a check-cashing service (a storefront business that charges a fee), a prepaid card company (which may let you deposit checks via mobile app or mail), or a retail store like Walmart or Target that cashes checks at the customer service desk. None of these routes are free. Check-cashing services typically charge 1 to 3 percent of the check amount, prepaid card services may charge $2 to $5 per deposit, and retail stores usually charge a flat fee of $3 to $6. You won't build a record of the deposit the way you would with a bank, and you lose the fraud protections that come with a bank account.
The choice depends on how fast you need the money and how much you want to spend. If you need cash today, a check-cashing service or retail store is fastest. If you can wait a few days and want a lower fee, a prepaid card may cost less overall—though you'll pay a monthly card fee whether you use it or not.
Key Takeaways
- Check-cashing services charge a percentage of the check amount (usually 1 to 3 percent) and are fastest if you need cash the same day.
- Prepaid card companies let you deposit checks by mail or mobile app and charge a flat fee per deposit instead of a percentage.
- Walmart, Target, and other retailers cash checks at the customer service desk for a flat fee, but have limits on check amount and may require an ID.
- None of these methods give you the same fraud protection or record-keeping that a bank account provides, so verify the check amount before you hand it over.
- If the check bounces after you cash it, you are responsible for repaying the amount—the service or store that cashed it will not cover the loss.
Check-cashing services: fastest but most expensive
A check-cashing service is a storefront business (not a bank) that converts checks to cash on the spot. You walk in with your check and a valid ID, the clerk verifies the check, and you walk out with cash minus the fee. The fee is usually 1 to 3 percent of the check amount—so a $500 check might cost you $5 to $15 to cash. Some services charge a flat fee instead, typically $5 to $10 per check.
The speed is the main advantage: you get cash the same day, usually within minutes. The downside is cost and risk. If the check bounces after you cash it, the service will come after you for the full amount. You also have no record of the transaction beyond a receipt, and no protection if the check was fraudulent or altered. Check-cashing services are common in low-income neighborhoods and near military bases; you can find one by searching "check cashing near me" or asking at a local convenience store.
Prepaid card companies: lower fees but slower deposits
Some prepaid card companies (like NetSpend, Chime, or Varo) let you deposit checks without a bank account. You load money onto the card by mailing a check to the company's address or using their mobile app to photograph the front and back of the check. The fee is usually $2 to $5 per deposit, much lower than a check-cashing service. The catch is speed: mailed checks take 5 to 10 business days to clear, and mobile deposits typically take 1 to 3 business days.
Prepaid cards do give you a record of the deposit and some fraud protection—if someone else deposits a check in your name, you can dispute it. However, prepaid cards are not bank accounts, so the protections are weaker than a bank's. You also pay monthly fees to keep the card active (usually $5 to $15 per month), plus fees for ATM withdrawals, balance inquiries, or other transactions. If you only need to cash one check, the total cost may be higher than a check-cashing service. But if you plan to use the card regularly for purchases or bill payments, the monthly fee spreads across multiple transactions and may work out cheaper.
Retail stores: flat fees and ID requirements
Walmart, Target, Kroger, and other large retailers cash checks at the customer service desk. The fee is usually $3 to $6 per check, and you get cash the same day. You need a valid government ID (driver's license, passport, or state ID card). Most retailers have a limit on check amount—often $1,000 to $5,000—so very large checks may be refused.
The process is simple: bring the check and your ID to the customer service desk, and they verify the check and hand you cash. Like check-cashing services, if the check bounces, you are liable for the amount. You also get no record of the deposit beyond a receipt. Retail check cashing is convenient if you are already shopping there, but the fee is fixed regardless of check size, so it is cheaper for large checks and more expensive for small ones compared to a percentage-based check-cashing service.
What happens if the check bounces
When you cash a check at a service, store, or prepaid card company, you assume the risk that the check is bad. If the check bounces—meaning the account it was drawn on has insufficient funds or is closed—the service or store will try to recover the money from you. They may deduct it from your account (if you have one linked to the prepaid card), demand payment in person, or send the debt to a collection agency.
You have no recourse against the service or store; they are not responsible for verifying the check. Your only option is to contact the person or business that gave you the check and ask them to issue a new one or repay you directly. If they refuse, you can pursue a small claims lawsuit, but that costs time and money. This is why it is important to verify the check amount and the payer's identity before you hand over the check. Never cash a check from someone you do not know or trust, and always inspect the check for signs of alteration or fraud.
Comparing the three routes by cost and speed
| Method | Fee Structure | Speed | ID Required | Record Kept |
|---|---|---|---|---|
| Check-cashing service | 1–3% of check amount or $5–$10 flat | Same day | Yes | Receipt only |
| Prepaid card (mail) | $2–$5 per deposit + $5–$15 monthly card fee | 5–10 business days | No | Yes, in app |
| Prepaid card (mobile app) | $2–$5 per deposit + $5–$15 monthly card fee | 1–3 business days | No | Yes, in app |
| Retail store | $3–$6 flat fee | Same day | Yes | Receipt only |
For a single $500 check cashed today, a check-cashing service costs $5 to $15, a retail store costs $3 to $6, and a prepaid card costs $2 to $5 plus a monthly fee. If you need the money immediately, retail or check-cashing is faster. If you can wait a few days and plan to use the prepaid card for other purchases, the prepaid card may be cheaper over time.
The best choice also depends on whether you have an ID. If you don't have a government-issued ID, a prepaid card is your only option, since check-cashing services and retail stores both require one. If you do have an ID and need cash today, compare the fee at your nearest retail store against the percentage fee at a check-cashing service—the cheaper option depends on the check amount.
Red flags: when not to cash a check
Do not cash a check if the amount is blank, if the date is more than six months old, if it is signed by someone you do not know or trust, or if the payer's name does not match the account holder's name. Do not cash a check that has been altered—if the amount or payee name looks like it was changed, ask the payer for a new check. Do not cash a check that is post-dated (dated in the future); most services will refuse it, but some may not, and you could end up liable if it bounces.
If you are cashing a check from an employer, government agency, or other official source, verify that the check is legitimate before you hand it over. Scammers sometimes send fake checks to people they have never met, asking them to cash the check and wire part of the money back. If this happens, do not cash the check—it is a scam, and you will be responsible for repaying the full amount when it bounces. If you are unsure whether a check is real, contact the issuer directly using a phone number or website you find yourself, not one provided by the person who gave you the check.
Frequently Asked Questions
Can I cash a check without an ID?
Check-cashing services and retail stores require a valid government ID. Prepaid card companies do not require an ID to deposit a check by mail or mobile app, but you may need an ID to set up the card initially. If you do not have an ID, a prepaid card is your best option.
What if the check is for more than the store's limit?
Retail stores typically refuse checks over $1,000 to $5,000. A check-cashing service or prepaid card company may accept larger checks, but check-cashing services may charge a higher fee or require additional verification. Call ahead to confirm the limit before you go in.
How long does it take to get the money?
Check-cashing services and retail stores give you cash the same day. Prepaid cards take 1 to 10 business days depending on whether you mail the check or use the mobile app. If you need the money today, use a check-cashing service or retail store.
Do I have to pay taxes on cashed checks?
No. Cashing a check is not a taxable event—you are converting a check into cash, not earning income. However, if the check is payment for work or services, you may owe income tax on that amount. The service or store that cashes the check does not report it to the IRS.
What if I lose the receipt?
If you lose the receipt from a check-cashing service or retail store, you have no proof of the transaction. Keep receipts in a safe place. If you use a prepaid card, the deposit is recorded in the app, so you can always look it up.