Check Cashing

Written by Serena Berger
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Check cashing used to be as simple as going to the neighborhood bank where you knew the teller on a first name basis and depositing your paycheck into your savings or checking account and perhaps withdrawing a portion of it. With direct deposit and ATMs having become increasingly popular, banking has lost its personal feel for many consumers. Now all they want is a convenient way to have access to their money, and many businesses are trying to fill that need.

The Desire for Convenience in Check Cashing

Independent of banks, check cashing is growing into a separate industry. Capitalizing on the rigid hours that many banks keep, check cashing companies offer customers more convenient hours so that they can make it there after work instead of making a separate trip to the bank. Rather than offering a full range of financial services, these companies charge fees for a smaller range of services, but appeal to anyone who simply wants to cash a paycheck at his or convenience.

To some degree, banks have pushed clients towards using automated services. It is common for banks only to allow a small number of teller visits per month per account, and charge a transaction fee for any visits beyond that. This allows banks to lower their cost because they do not require as many hours from tellers, but poses an inconvenience to their clients.

Sensing the growing consumer demand for more convenient methods of check cashing, larger stores will sometimes have small banking centers located inside them. Even supermarkets have these centers, realizing that if they get you into the store to cash your paycheck, there is a fairly good chance that you will spend some of your money while you are there. If you do not need all the bells and whistles that go along with traditional banks, emerging check cashing companies may be able to provide you with greater convenience and less of a hassle.

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