How to Save Money on Check Cashing Fees

It’s PAYDAY!!! Everyone looks forward to payday, whether it’s from your job, unemployment, benefits or something else.  While getting money is a great feeling, having to pay to cash a check is not.  The truth is, there are several people who receive paper checks on a regular basis and still have to pay a company to cash that check. 

Why do people have to pay to cash a check?

Most people who pay to have a check cashed do so because they do not have an account with a financial institution that provides a check cashing service.  Additionally, some financial institutions may not cash a check if the customer’s account balance does not equal or exceed the amount of the check being cashed. 

How much do people spend to cash a check?

Having to cash any check at a physical location not only costs money, but it costs time.  The average fee to cash a check ranges from 1% to 5% of the check amount and can sometimes be as high as 10%.  That means it could likely cost $10 – $50 to cash a $1000 paycheck not mention the commute and wait time also.

How to avoid paying fees to cash a check

While having a traditional bank account is the easiest way to avoid check cashing fees, banks are not for everyone. In fact, the African American and Minority populations face more difficulties with Financial Institutions than their Caucasian counterparts.  Easy to get and use prepaid debit cards, like the ONE VIP Visa Debit card are great solutions for avoiding check cashing fees. 

For example, the ONE VIP card has a remote check deposit feature available through their mobile app.  You can simply snap a photo of the front and back (must be signed) of the check and use the mobile app to deposit the check onto a ONE VIP card for free! 

Another way to avoid check cashing fees is to sign up for direct deposit. Many people think that direct deposit only works with bank accounts.  Wrong.  The ONE VIP Visa Debit card, for example, is not a bank account but has the same direct deposit feature.  A member can sign up to have their source of income deposited directly to their ONE VIP card and never have to worry about waiting for a check or paying a fee to cash it.

Bottom Line

If you are paying to cash checks on a regular basis, there is a lot of money to be saved.  Consider a solution, like the ONE VIP Visa Debit card and put more money back in your pocket.  Click here to get your ONE VIP Visa Debit Card.