It’s PAYDAY!!! Everyone looks forward to payday, whether it’s from your job, unemployment, benefits, or anything else. While getting money is a great feeling, having to pay to cash a check is not. The truth is, several people receive paper checks regularly 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 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 range 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 to 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 the 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 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.
If you are paying to cash checks regularly, 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.