What are Cheque Cashing Services?

When it comes to cheque cashing, there are several services available to convert that valuable piece of paper into cold, hard cash. If you have a bank account, you might consider this option. Unfortunately, banks tend to charge excessive maintenance fees for their accounts and you rarely get immediate access to your money, especially over the weekend. In contrast, cheque cashing companies can give you cash in hand in mere minutes.  

What Does a Cheque Cashing Company Do? 

As the name implies, cheque cashing companies provide a no-bank alternative to converting your cheque to cash for a small fee. Some even let you use apps to complete the process. Many companies might provide additional services, such as debit cards, personal loans, ATM access,  and money orders. Not all companies are reputable so be sure to do some research before choosing to work with one. 

Who Needs Cheque Cashing Services Most? 

Not everyone wants or can become eligible for a traditional bank account. People without bank accounts are known as “unbanked” persons and still need access to their money. Whenever possible, unbanked people might choose to get money in cash, but there are some transactions where cheques might present the only option. In these instances, cheque cashing services become indispensable. Note that banks generally only cash cheques for their customers. 

Why Choose a Cheque Cashing Service Over a Bank? 

Even if you do have a bank account, there are several instances where a cheque cashing service might still prove more convenient than relying on your bank: 

• Weekend Transactions: Traditional banks do not generally process transactions after closing time on a Friday and before opening time on Monday morning. If you need immediate access to cash on a Saturday evening, cheque cashing services might best suit your needs. 

• Immediate Access: Even if it is not a Saturday evening, your bank might place a hold on the funds from the deposited cheque until it clears, thereby restricting your access to the money. If you need money immediately on any day of the week, choose cheque cashing services. 

• Cash Free From Liens: If you have fallen behind on bills and private creditors or the government seized the assets in your bank account, cheque cashing services might provide access to money you need to pay your bills and stay afloat while you regain your financial footing and repay debts.