First things first, it is important to know that many adults don’t have a bank account or regularly use one. Whether you need to cash a cheque elsewhere because you aren’t currently affiliated with a bank, or because you simply need the money sooner than the bank holding period allows, you have options.
Although this means that you can’t simply walk into a branch and deposit a cheque into your account, the process doesn’t ultimately have to be that complicated. That being said, it is important to understand that if you don’t have a bank account, you will have to pay a fee to cash a cheque and you will also need identification in order to do so. Rates vary a lot depending on where you do it though, so here are some tips to make the process of cashing a cheque go as smoothly as possible.
1. How does the process work?
If it’s your first time using a cheque cashing service, this is what you can expect: you walk into the cheque cashing service office, sign the cheque over to the cheque casher, and they give you the money right then and there, with the exception of the fee that you have agreed upon in advance. Following this, they will deposit the cheque into their account and wait for it to clear, meaning that you get the money right away and don’t have to wait for this part of the process.
Of course, as with any transaction involving money, there are a few legal boxes that need to be ticked in order for everything to run this smoothly. Nevertheless, if everything is in order and you have all the appropriate documentation on hand, cashing a cheque at a cheque cashing service shouldn’t take more than 30 minutes from start to finish.
2. Can anything go wrong?
The biggest issue that arises when it comes to cashing cheques through a service, or otherwise, is if the cheque bounces. A bounced cheque is one which cannot be fulfilled by the account the money is coming from, or a cheque which has been cancelled before the money can be transferred. This basically renders the cheque worthless, and if it believed that the money still needs to be transferred, a replacement cheque will have to be issued in order to complete the transaction.
3. What if the money has already been paid out?
There, if a cheque bounces after the money has been paid out the cash to you, then you will be liable to pay back the money. However, if the cheque has bounced by mistake and you are able to sort this with the person or company who gave you the cheque in the first place, then they should be able to replace the cheque. If you are unsure about whether or not the cheque will bounce, it’s best not to cash it until you are confident. Generally, this is only a problem when dealing with private cheques, and cheques that you have received from a large company or an employer are not likely to bounce and can usually be cashed without any trouble.
4. Is it safe to use a cheque cashing service?
The short answer is yes, using a cheque cashing service is perfectly safe and legal and many people do it. You simply want to make sure that you are dealing with a company that is registered under a regulatory body and that has a good reputation for treating their customers fairly and with respect, in addition to being transparent about how they carry out their services.