Your options for turning a check into cash
You can cash a check at the bank or credit union that issued it, at a check-cashing store, at some retail locations, or by signing it over to someone else who has an account. The bank that issued the check (the one printed in the bottom left corner) will cash it for free if you go in person with a valid ID, even if you don't have an account there. Check-cashing stores and retailers charge a fee—usually 1 to 3 percent of the check amount—but they're faster and more widely available than banks.
The method you choose depends on how much you want to pay in fees, how quickly you need the cash, and what's available near you. A paycheck for $500 might cost you $5 to $15 at a check-cashing store, while the issuing bank costs nothing but may have limited hours.
Key Takeaways
- The bank that issued the check will cash it for free with a valid ID, even without an account at that bank.
- Check-cashing stores charge 1 to 3 percent of the check amount but are open longer hours and more locations than banks.
- Walmart, grocery stores, and other retailers cash checks for a flat fee (often $3 to $6) rather than a percentage.
- You can sign a check over to someone with a bank account, but they must endorse it and deposit it in their name.
- Mobile check deposit through a bank app works if you have a smartphone and can set up an account online.
Cashing at the issuing bank for free
The bank or credit union whose name appears at the bottom of the check must cash it at no charge. Bring the check and a government-issued ID (driver's license, passport, or state ID). You don't need an account at that bank. Walk into any branch during business hours and tell the teller you want to cash the check.
This is the cheapest option, but banks have limited hours—usually 9 a.m. to 5 p.m. on weekdays, sometimes Saturday morning, rarely evenings or Sundays. If the check is from a small local bank or credit union, you may have to travel to find a branch. Large national banks like Bank of America, Chase, and Wells Fargo have branches in most cities, so a paycheck from your employer's payroll account is usually easy to cash this way.
Some banks will refuse to cash a check if it's postdated (dated in the future), if the amount is very large, or if the check is damaged or unclear. Ask the teller before you hand it over. If a bank refuses, you still have the option to use a check-cashing store or retail location instead.
Check-cashing stores and their fees
Check-cashing stores are open longer than banks and don't require an account. They charge a percentage of the check amount—typically 1 to 3 percent—so a $500 check costs $5 to $15. Some stores charge a flat fee instead, usually $3 to $10 regardless of the amount. Bring a valid ID and the check. The process takes 5 to 10 minutes.
The fee varies by state and by the type of check. Personal checks often cost more than payroll checks. Some stores charge extra for out-of-state checks or checks from smaller banks. Ask the fee before you hand over the check. Compare a few stores near you if you have the time—fees can differ by $5 or more on the same check.
Check-cashing stores are common in urban and suburban areas but rare in small towns. Search online for "check cashing near me" to find locations and their hours. Many are open evenings and weekends, which makes them useful if you need cash outside bank hours.
Retail locations that cash checks
Walmart, Target, grocery store chains, and some pharmacies cash checks for a flat fee, usually $3 to $6. This is often cheaper than a percentage-based fee at a check-cashing store, especially for larger checks. Bring your ID and the check to the customer service desk. Hours are longer than banks—many stores are open until 10 p.m. or later, and some are open on Sundays.
Not all locations cash checks, and policies vary by store and region. Call ahead or check the store's website before you go. Walmart, for example, cashes most payroll checks and government checks but may refuse personal checks or checks over a certain amount. Some grocery stores only cash checks for customers with a loyalty card.
Retail check cashing is convenient if you're already shopping, but the flat fee makes it less attractive for small checks. A $50 check with a $3 fee costs you 6 percent, while a $500 check with the same $3 fee costs only 0.6 percent.
Signing a check over to someone else
You can endorse a check to another person and they can deposit it into their bank account in their name. Turn the check over and sign the back. Write "Pay to the order of [their name]" above your signature. They then sign below your signature and deposit it at their bank. This works only if the check allows third-party deposits—many banks and employers now refuse them for fraud prevention.
Even if the check allows it, the person depositing it must be comfortable with the arrangement, and their bank must accept third-party checks. Some banks have stopped accepting them entirely. Call the bank before you try this method. This option is free but unreliable, so use it only if you know someone well and their bank has confirmed they accept third-party deposits.
Mobile check deposit if you can open an account
Many banks and online-only banks let you deposit a check by taking a photo with your phone. You don't have to visit a branch. Some banks let you open an account online with just an ID and a phone number, even without a Social Security number (though you'll need one eventually for tax purposes).
This requires a smartphone, internet access, and the ability to set up an account. Once the check is deposited, the money usually appears in your account within one to three business days. You can then withdraw it at an ATM or ask for a debit card. This is free and fast, but it only works if you're willing to open an account.
If you've avoided bank accounts because of past overdrafts or debt, look for banks that offer second-chance accounts or no-overdraft accounts. Some credit unions and online banks have lower fees and simpler terms than traditional banks. Opening an account takes 10 to 15 minutes online, and you can start depositing checks the same day.
Comparing your costs and timing
| Method | Cost | Time to cash | Hours available |
|---|---|---|---|
| Issuing bank | Free | 5–10 minutes | Weekdays 9–5, some Saturdays |
| Check-cashing store | 1–3% or $3–$10 flat | 5–10 minutes | Often evenings and weekends |
| Retail (Walmart, grocery) | $3–$6 flat | 5–10 minutes | Store hours, often until 10 p.m. |
| Third-party endorsement | Free | Depends on other person | Anytime |
| Mobile deposit (with account) | Free | 1–3 business days | Anytime |
For a $500 paycheck, the issuing bank is free and takes 10 minutes. A check-cashing store costs $5 to $15. Walmart costs $3 to $6. If you need cash immediately and the issuing bank is closed, retail or check-cashing is worth the fee. If you can wait a few days, mobile deposit is free.
The best choice depends on your situation. If you cash checks regularly, opening a free bank account saves money over time. If you need cash today and the issuing bank is closed, retail or check-cashing stores are your fastest option. If you have time to wait, mobile deposit through an online bank is free and requires no travel.
Frequently Asked Questions
What if I don't have a valid ID?
Most places require a government-issued ID to cash a check. If you don't have one, get a state ID from your local DMV or equivalent office. Some check-cashing stores may accept other forms of ID like a passport or tribal ID, but call first. Without any ID, you cannot cash a check legally.
Can I cash a check from my employer if it's from a small local bank?
Yes, but you'll need to find a branch of that bank. If there's no branch near you, use a check-cashing store or retail location instead. You can also ask your employer to switch to direct deposit, which puts the money in your account without a check.
What happens if the check is postdated?
A postdated check is dated in the future. Banks and check-cashing stores may refuse to cash it until that date arrives. If you need the money now, ask the person who wrote the check to write a new one with today's date instead.
Do I have to pay taxes on cashed checks?
Payroll checks and most business checks are already taxed or will be reported to the IRS by your employer. Personal checks between friends or family are not taxable income. If you're unsure, keep records of who gave you the check and why.
Is it cheaper to open a bank account just to deposit checks?
If you cash checks regularly, yes. Many banks have no monthly fee. One $500 check costs $5 to $15 at a check-cashing store; if you cash two or more per month, a free bank account pays for itself. You also get access to ATMs and the option to pay bills online.