Like everything else in our world, you might assume that all financial transactions are electronic. But check cashing and payday loans still account for $18 billion in revenue annually in the United States.
A third-party check is one where the person it was written to has endorsed it to someone else. It’s an easy way to pass payment to someone else who can cash it.
The issue is that to cash a third-party check often requires specific steps. It cannot be easy, and you could spend a lot of time driving around town to find the best way to do it.
Fortunately, there are several straightforward ways of cashing checks as a third party. Keep reading to find out the three main options available to you.
1. Use a Bank or Credit Union
The easiest way to cash a third-party check is through a bank or credit union. But, first, the original recipient must write in the endorsement section: “pay to the order of” and include the third party’s name. Then you–the third party–must endorse it as well, as you would any other check.
If you have an account with the bank, they will cash it, and there should not be any fees associated with the translation. But some banks will cash third-party checks even if you don’t have an account. But they will probably charge you fees for doing so.
2. Cash the Check at a Store
There are alternatives if you do not have access to a bank or credit union. For example, perhaps you don’t have a checking account, or your bank doesn’t have any branches where you live. One option is local retailers.
Many stores like Walmart, Kmart, and grocery stores offer check-cashing services for their customers. However, note that some of them, like Kroger, may only cash payroll, government-issued, or insurance checks, but not personal ones. Also, be aware that these may demand hefty fees, which will vary depending on the check amount.
3. Transfer It to a Prepaid Card
This is similar to using a mobile app to deposit a check into your bank account. Make sure you get a prepaid card that has a mobile app that allows deposits through your phone or some other way of cashing checks online.
There also are physical locations that offer similar services. Many retail stores, like 7-Eleven, do not offer traditional check-cashing options but provide prepaid cards as an alternative.
You also might want to ensure you are aware of any fees associated with doing so. Also, like with other options, there could be a delay in how quickly the funds transfer onto the card.
Learn More About How to Cash a Third Party Check
Now that you know all the different ways you can cash a third-party check, you can decide which option best suits your preferences. Cashing a check through the abovementioned avenues will help you get your money faster and avoid the hassle.
At Check Cashing 247, our mission is to help you improve your finances by offering the best support for online banking. So reach out to us today to see how we can help.