Cashing Checks: The Complete Guide to Your Best Options and Hidden Costs

Receiving a check still happens more often than you’d think, but figuring out the cheapest way to cash it requires understanding your available options. Whether you have a bank account or not, you’ll face various routes—each with different fees that could significantly impact what you actually pocket.

What You Need to Know Before You Cash a Check

First, the basics. Most places require a valid ID like a driver’s license to cash a check. The main exception? Depositing through an ATM or signing it over to someone else doesn’t require identification. Your first step is to endorse the check by signing your name on the back.

The golden rule: hold onto your physical check for at least 14 days after depositing it, just in case something goes wrong.

The Cost Breakdown: Where to Cash a Check

Banks and Credit Unions: The Free Option

If you have an account, your financial institution is typically your best bet. Most banks offer free check cashing for customers. You can go in person, use the ATM, or increasingly, deposit through your mobile app—taking photos of both sides of the check and submitting them digitally.

The Issuing Bank Route

Head directly to the bank that issued the check. They can verify funds immediately. Some charge a small fee deducted from your cash; others waive it. This works even if you don’t have an account there.

Retail Chains: Convenience Comes at a Price

Walmart and Kroger-owned stores offer check cashing, but fees add up fast:

Walmart charges between $4 for checks up to $1,000, up to $8 for checks between $1,000-$5,000. Two-party personal checks max out at $200 with a $6 fee. Kroger’s network spans over 2,000 stores with fees ranging from $4 to $7.50, though they cap check totals at $5,000.

PayPal: The Digital Alternative

With a PayPal Cash Plus account, upload check photos. Get your money instantly for a 1% fee on payroll/government checks (5% on others, minimum $5), or wait 10 days for free.

Check-Cashing Stores: Avoid Unless Desperate

These establishments are your financial black hole. Fees are percentage-based and rarely disclosed upfront. Interest rates can spiral toward 400%, making this a last-resort option only.

What if You Don’t Have a Bank Account?

Over seven million American households lack traditional banking. Your alternatives include prepaid cards like American Express Serve or Bluebird, which support mobile check deposits (10 days free or 1-5% for expedited processing). Or you can sign the check over to a trusted friend or family member to cash on your behalf.

Some ATMs allow check cashing, though it’s uncommon—your best bet is depositing first, then withdrawing.

The Real Talk: What You Actually Need to Do

If you can cash a check without fees, do it. That means banking with an institution that supports mobile check deposits or visiting your bank in person. The $4-$8 you save at retail stores compounds quickly if you receive checks regularly.

For the unbanked, prepaid cards offering free 10-day deposits beat check-cashing stores by a landslide. And always verify you’re cashing a legitimate check—counterfeit schemes are real, and if the check bounces, you’re financially liable.

The Long-Term Play: Get a Checking Account

Despite multiple workarounds, opening a checking account remains the smartest move. You deposit checks fee-free, your money stays secure (FDIC-insured up to legal limits), and you access funds instantly via debit card. No more worrying about carrying large amounts of cash or overpaying at third-party services.

Checks remain valid for 180 days—six months to decide how you want to cash them.