Understanding Check Cashing Fees: What Percentage Does Check Cashing Take?

Check cashing is a convenient financial service that allows individuals to turn their checks into cash without opening a bank account. However, it’s essential to understand the fees associated with check cashing to make informed financial decisions. In this article, we will delve into the world of check cashing fees and provide a comprehensive understanding of what percentage of your check is typically taken by check cashing providers.

Understanding Check Cashing Fees

Check cashing services, which charge fees for their convenience, which can vary depending on several factors. While the exact fee structure may differ from one provider to another, there are some common elements to consider when calculating what percentage of your check will be taken.

1. Flat Fees

Many check cashing services charge a fixed fee, regardless of the check’s value. These fees can range from $3 to $10 or more. If you have a small check, this flat fee can represent a relatively high percentage of your check’s value.

2. Percentage-Based Fees

Some check cashing providers charge a percentage of the check’s face value. This percentage typically falls between 1% and 5%. For example, if your check is for $1,000 and the fee is 3%, you would pay $30 in fees, representing 3% of your check.

3. VIP or Membership Programs

Certain check-cashing businesses offer VIP or membership programs that can lower your fees. These programs often require a monthly or annual fee, but they can significantly reduce the percentage taken from your checks over time.

4. Government or Payroll Checks

Checks issued by the government or your employer, such as payroll or tax refund checks, often come with lower fees than personal checks. Some check-cashing providers even offer discounted rates or flat fees for these checks.

5. Additional Services

Remember that check cashing services may charge extra fees for additional services, such as check verification or the option to receive your funds in cash instead of a prepaid card. Be sure to inquire about any additional fees before proceeding with the service.

Minimizing Check Cashing Fees

Now that you have a better understanding of how check cashing fees work, here are some tips to help you minimize the percentage taken from your checks:

  1. Shop Around: Compare fees from check cashing providers to find the most competitive rates.
  2. Use Government or Payroll Checks: Opt for government or payroll checks, as they usually have lower fees.
  3. Consider Opening a Bank Account: If you frequently need check cashing services, opening a bank account may be a more cost-effective solution in the long run.
  4. Join Membership Programs: If you use check cashing services regularly, joining a VIP or membership program can help reduce fees over time.
  5. Be Informed: Always ask about fees and any additional charges before cashing your check to avoid surprises.


Check cashing fees can vary significantly, with some providers charging flat fees and others taking a percentage of your check’s face value. Being aware of these fees is crucial to make informed financial decisions. By shopping around, using government or payroll checks, and considering alternative financial solutions, you can minimize the percentage of your check taken by check cashing services and keep more of your hard-earned money.

In this article, we’ve shed light on what percentage check cashing typically takes and provide valuable insights to help you manage these fees effectively.