5 Tricks to Cash a Cheque Without a Bank Account
It is estimated that 98 percent of Canadians have a bank account. This is an astounding figure, especially considering that a considerable number of American consumers – roughly one-fifth – don’t maintain a chequing account.
Still, even if it is just two percent of the population, that still means thousands of consumers across the Great White North do not have access to pertinent financial services.
This can be immensely difficult when you’re attempting to perform the most basic of financial chores. Everything from cashing a cheque to paying a bill, when you don’t have an account at a conventional financial institution, online bank, or credit union, you’re missing out.
So, what exactly can you do when you’re trying to cash a cheque? Well, there are plenty of cheque cashing services. You just need to know how to navigate the market.
Here are five tips for cashing a cheque without a bank account:
1. Shop Around for the Best Services
Like any other service – financial or otherwise – it is imperative to always shop around for the best deal or the best service. Ditto for cheque-cashing.
Across the Greater Toronto Area, there are hundreds of cheque-cashing businesses that offer competitive rates, various types of other services, and top-notch customer service.
In addition to perusing the list of fees, you should also read through customer reviews, online testimonials, and star ratings. These elements will ensure you’re selecting a firm that is tailored to your needs.
2. Have Identification with You
Prior to cashing a cheque, you need to make sure that you have the right identification with you. This can consist of a driver’s license, Ontario photo ID, a passport, and any other kind of government-issued identification.
Just remember that you must refrain from using your Social Insurance Number card as ID.
3. Get Ready to Pay a Fee
Yes, unfortunately, there is a fee that you need to pay for cashing your cheque.
This is why it is essential that you shop around for the best services.
The cost will range anywhere from a couple of loonies to a few banknotes. Some will even request a percentage of the cheque. Even if the cheque for $50, you still need to fork over a service charge for using this alternative method.
4. Visit the Issuing Bank
What about using a traditional financial institution? Well, banks are a lot more willing to cash a cheque to a non-customer if they are the issuer of the cheque. Also, you don’t need to worry about paying an exorbitant fee because the bank won’t charge you for process the cheque.
5. Endorse Cheque Over to Friend or Family
Do you have a friend you can trust? Is there a family member you can turn to?
Whatever your personal situation may be, perhaps you can bypass the headache of visiting cheque-cashing branches or shelling out hefty fees by endorsing a cheque to someone else.
Yes, you are placing a large responsibility on someone you care about. But if the cheque is legitimate and zero problems are likely to arise, then maybe you should just sign over the cheque to someone you know who has a bank account.
The alternative financial services industry is a multi-billion-dollar market in North America. Cheque-cashing, payday loans, pre-paid cards, bill payments. Whatever the service is, and it is not being completed by a TD Bank, a Royal Bank of Canada, or a Bank of Montreal, you are more than likely paying a lot of money using these facilities.
Let’s be honest: not everyone is Warren Buffett, and many Canadians are already cash-strapped, living paycheque to paycheque. The last thing they want is to hand over a portion of a cheque. To circumvent these vast sums of charges, you need to do your research and heed these tips to properly use this niche.