Cashing checks is an important task for businesses and consumers. While online payments are popu-lar, people aren't always trusting of this option. Because of this, having a business bank account in-place is key. However, some business owners prefer to operate without involving banks.
If you have a business bank accounts, cashing a check is easy. However, without a business bank ac-count, it becomes more complicated.
If you can't open a business bank account, here are your options for cashing business checks:
1. Walmart and Other Retail Stores
Most Walmart stores offer check cashing services. Businesses can present their checks to the Money Center or Service Desk, although check cashing isn't available in every state.
Other retailers, such as supermarkets and drugstores, offer check-cashing services, but they may not accept business checks.
2. Check Issuing Banks
Usually, if you go to the issuing bank to have your check cashed, they can verify the account is legiti-mate. However, depending on the bank, you may be charged a processing fee. This fee may be waived if you decide to open an account at this bank.
3. Specific "Money Centers"
Money centers are usually willing to cash business checks, but they usually come with fees and require an application.
When utilizing money centers, you'll receive cash quicker than you would if you went to a bank. How-ever, the fees charged are higher, because that's how the centers make money.
4. Checking Cashing Stores
You'll likely see stores in small neighborhoods that offer check cashinq services. They're usually lenient when cashing business checks, but can be expensive.
The fees charged are usually based on a percentage of the check amount and can be for 5 percent or more. For smaller checks, this may not seem like much, but if you use this service often, the fees will add up.
5. Prepaid Debit Card Transfer
Opening a prepaid debit card can helo when cashing business checks.
Mobile apps such as InGo allow you to scan your business checks and add cash to vour prepaid debit card, minus a fee. If you're willing to wait ten days, the company may waive the fees, as long as the check clears.
Source: https://www.forafinancial.com/blog/small-business/check-cashing/