Check cashing is a necessary operation for both firms and customers. So, how do you cash a check without a bank account?
Even though internet payments are common, individuals don’t always trust them; therefore, having a company bank account is essential.
On the other hand, some business owners desire to function even without the involvement of banks.
Cashing a check is simple if you have a business bank account. However, it will be more difficult if you don’t have a business bank account.
This article will discuss how to cash checks without a business bank account. We’ll also discuss why we think you should create a business bank account.
SEE ALSO: Does Walmart Cash Personal Checks in 2022?
Steps you can take
If you are unable to create a business bank account, the best alternatives for cashing company checks are available to you
1. Wal-Mart and other retail establishments
Check cashing is available at most Walmart locations. While check cashing isn’t accessible in every state, businesses can bring their checks to the Money Center or Service Desk.
You can claim the payment in cash or on a Walmart MoneyCard, and the corporation charges fees based on the type of transaction that was made, which can cost additional expenses.
Walmart usually does not cash checks for more than $5,000. Whenever the check amount is less than that maximum, you can cash numerous checks.
Walmart will demand acceptable government-issued credentials and other verification to cash a cheque.
Check-cashing services are available at other retailers, including grocery stores and drugstores. However, they may not take business checks.
2. Investigate Issuing Banks
When you’re at the issuing bank to cash your check, they can usually confirm that the account is authentic.
Yet, you may be billed a service fee based on the bank. Choosing to set up an account with the bank would sometimes eliminate the charge.
You might be likely to dodge fees if you can discover a friend or relative that has an account with the issuing bank.
The bank could use this individual’s account to support the cheque for your company.
This isn’t a long-term strategy, though, because this individual will have to be accessible for any check processed.
SEE ALSO: How to pay employees cash legally
3. “Money Centers” with a clear reference
Money centers are willing to exchange business checks. However, fees and registration are frequently involved.
If you go to a money center instead of a bank, you’ll get cash much faster. But, because this is how the centers earn a profit, the costs billed are greater.
4. Check to cash establishments
Check cashing services are commonly present in small towns. They’re generally tolerant when cashing company checks, although they can be pricey.
Payments are typically calculated as a percentage of the check amount and can be as high as 5%.
These charges may not appear significant for small checks, but they will mount up quickly if you use this service frequently.
5. Transfer of a Prepaid Debit Card
You can cash business checks by obtaining a prepaid debit card. Mobile apps like InGo let you analyze business checks and make deposits to your prepaid debit card for a cost.
If you’re prepared to wait 10 days for the check to clear, the corporation may eliminate the fees.
It’s crucial to remember that prepaid cards do expire, but your money is safe.
If this happens, you’ll need to get a different prepaid debit card and move your money to it, and this is with a charge.
Obtaining a business bank account demonstrates to your consumers that your company is genuine and simplifies the process of processing checks.
Even though check-cashing services are available in-store and digitally that do not even need a bank account, they are not advised as a lengthy monetary remedy.
When You Get Business Checks, What Occurs?
If you’re a lone entrepreneur, your business is most likely linked to your bank account. From a legal sense, however, personal possessions are not protected.
Collecting checks will become a bigger problem once you have a different business structure, such as an LLC or corporation.
Customers will most likely write checks to your company’s name. It won’t be easy to collect the funds if you don’t have an account.
SEE ALSO: Do Safeway Cash Checks?
To cash a check without a bank account is a possibility, even though it will require a little more stress than usual to achieve.
As you take what you’ve learned from this article into consideration, be sure that you can cash a check without a bank account.