Payroll checks can be cashed in a variety of ways, including through some retailers, check cashing services, the bank issuing the check or through some prepaid accounts. The amount of transaction fees required to cash the check can vary significantly depending on the type service used.
Many major retail chains, convenience and grocery stores, including 7-Eleven, Walmart and Hy-vee provide some of the least expensive places to cash payroll checks. Walmart charges $3 to cash payroll checks up to $1,000 with an additional $3 for checks up to $5,000. Some 7-Eleven locations have kiosks that allow users to cash payroll checks for a 0.99 percent fee of the check total.
Check-cashing stores are available in many areas, some as local companies and others being national chain stores. Most places generally work in the same manner by charging a flat rate fee to cash the check in addition to a percentage of the check. These are typically some of the most accessible and expensive options.
Most banks that are the issuing entity of a payroll check refuse to cash any checks for an individual that is not a current account holder at the bank without a fee. The fees vary depending on the bank. Some financial institutions offer prepaid cards to customers without bank accounts. Some companies allow customers to deposit a check by taking its photograph with a smartphone. Instant deposit typically has a fee; however, if the customer is willing to wait until the check clears to access the funds, check cashing is sometimes free.