What Is Check Cashing and How Does It Work?
Check cashing is a service that turns a check into cash the same day. People use it when they do not have a bank account, when their bank is closed, or when they need money now and cannot wait for a deposit to clear. Knowing what check cashing is and how the fee works helps you decide if it fits your needs.
This guide explains how check cashing works, which checks are usually accepted, how fees are calculated and how it compares with a bank. It is general information, not financial advice.
How check cashing works
When you cash a check, you hand the check to a store clerk, show a valid photo ID, and receive cash. The store keeps the check and deducts its fee from the amount you receive. The store then collects the money from the check's bank or payer.
Because you receive your money right away, check cashing is often used for paychecks and government payments. You do not need to wait for a bank deposit to clear before you can spend the money.
Many stores also offer other services, such as money orders, bill payment and money transfers. If you need several errands done in one trip, ask which services are available at the store you plan to use.
Which checks are usually cashed
Each check cashing store decides which checks it accepts, so ask before you visit. Government and payroll checks are commonly accepted at many stores. Some stores also accept tax refund checks, cashier's checks and other official checks.
Personal checks are often treated as higher risk. Some stores will not cash them at all, and others only cash them for regular customers. Check with the store first to avoid a wasted trip.
How check cashing fees work
Check cashing stores charge a fee based on a percentage of the check. The fee is taken out before you get your cash, so the amount you receive is always less than the check. In California, the law caps that percentage. Our fees are posted at the counter and follow California law (Civil Code section 1789.35): no more than 3% of the face amount of a payroll or government check when you show ID, or 3.5% without ID. Personal checks may be charged no more than 12%. Check cashers in California register with the California Attorney General.
- A $500 payroll check with ID: the fee is at most $15.00, so you receive at least $485.00.
- A $1,500 payroll check with ID: the fee is at most $45.00, so you receive at least $1,455.00.
Before you hand over the check, ask the clerk to show you the fee in dollars and the exact amount you will receive. Knowing the final number helps you plan which bills to pay first.
Check cashing compared with a bank
A bank may cash a check for free if you have an account there, but many people do not qualify for an account or prefer not to use one. A bank may also hold the funds from a deposited check before you can use them. Check cashing gives you cash at the counter, but you pay a fee for that speed.
Compare both options. Ask the bank about its holds and fees, and ask the check cashing store about its rate. Choose the option that gives you the most usable money for the least cost.
What to bring and what to expect
Bring the check and a valid government-issued photo ID. Some stores also ask for a recent pay stub or other proof that the check is yours. A check that is damaged, altered or missing a signature may not be accepted, so check it before you leave home. Check cashing is a service for turning a check you already have into cash. It is not a loan.
If you need money that you will repay over time, that is a different service. Learn about our California payday loans before you decide.
How CC California Cash can help
Our Torrance store cashes payroll and government checks, along with payroll debit cards and EBT-type debit cards. You can see our check cashing page for more details. We also sell low-cost money orders (ask at the counter for the current fee) and offer MoneyGram, bill payment and other counter services.
Visit us at 1223 W Carson Street, Torrance, CA 90502, or call (310) 787-7587 (Mon-Fri 9 AM-6 PM, Sat-Sun 10 AM-4 PM). Our staff can explain the current fee for your check before you hand it over. You can also browse our full list of store services.
Licensed California lender since 1999. Up to $255, qualify in about 15 minutes at 1223 W Carson St, Torrance.
Frequently asked questions
What is check cashing?
Check cashing is a service that gives you cash for a check the same day. The store keeps a fee, which is usually a percentage of the check amount.
Does check cashing cost money?
Yes. Stores charge a fee that is taken out of the check before you receive cash. At our Torrance store, fees follow California law: no more than 3% of a payroll or government check when you show ID, and no more than 3.5% without ID. Personal checks may be charged no more than 12%.
What checks can I cash at a check cashing store?
Government and payroll checks are commonly accepted. Other checks depend on the store, so call ahead, especially for personal checks.
Is check cashing the same as a payday loan?
No. Check cashing turns a check you already have into cash, minus a fee. A payday loan is money you borrow and repay later, under a separate agreement.
Do I need a bank account to cash a check?
Not always. Requirements vary by store, so ask about ID and documents when you call or visit. Our Torrance store can be reached at (310) 787-7587.
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General information, not legal or financial advice.