If you‘ve ever found yourself holding a check with no bank account to deposit it in, you‘re not alone. According to a 2019 FDIC survey, over 7 million U.S. households are "unbanked," meaning they don‘t have a checking or savings account. An additional 12 million are "underbanked," with a bank account but also using alternative financial services like check cashing. That‘s where 7-Eleven and its check cashing service comes in.
As a retail and consumer expert, I‘ve studied the check cashing industry in depth. In this comprehensive guide, I‘ll share my insights on 7-Eleven‘s check cashing services, including what types of checks they cash, how much it costs, how it compares to the alternatives, and some insider tips for cashing your checks safely and affordably.
The Convenience of Check Cashing at 7-Eleven
So why do millions of Americans turn to 7-Eleven and similar retailers to cash their checks? The main reason is convenience. With over 9,500 locations across the U.S., many of them open 24/7, there‘s likely a 7-Eleven near you. And unlike banks, there‘s no need for an account, and you can get your cash immediately.
7-Eleven also cashes a variety of check types that some other check cashing services may not, including:
- Payroll and employee checks
- Government checks (tax refunds, Social Security benefits, disability checks, etc.)
- Insurance settlement checks
- Money orders
- Some business checks
However, not all 7-Eleven locations offer check cashing. And those that do often have some important limitations to be aware of. Most importantly, they do NOT cash personal checks (those written from one individual to another). They also typically have a check amount limit, often around $500 to $1,000.
What Are 7-Eleven‘s Check Cashing Fees?
Of course, 7-Eleven‘s check cashing isn‘t free. Like most retailers that cash checks, they charge a fee for the service. According to data from the Consumer Financial Protection Bureau, the average fee for cashing a check at a retailer is around 1.5% to 3% of the check amount.
At 7-Eleven specifically, check cashing fees average around 0.99% to 1.99% of the check amount, according to recent reports. That means for a $500 check, you‘d likely pay between $4.95 and $9.95 in fees. Some locations also have a minimum fee (often around $3) for checks under a certain amount.
Here‘s a quick comparison of how 7-Eleven‘s fees stack up against some other popular check cashing options:
| Check Cashing Service | Typical Fee |
|---|---|
| 7-Eleven | 0.99% – 1.99% |
| Walmart | $4 for checks up to $1,000 |
| Kroger/King Soopers | $4 – $8 for most check types |
| ACE Cash Express | 2% – 3% of check amount |
| Check Cashing Stores | 3% – 7% or more |
As you can see, while 7-Eleven‘s fees are slightly lower than some other major retailers, they‘re still no match for the free check cashing that most banks and credit unions offer their own customers. More on that later.
How to Cash a Check at 7-Eleven: A Step-by-Step Guide
If you do decide to cash a check at a participating 7-Eleven location, the process is usually pretty straightforward. Here‘s a step-by-step guide:
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Locate a 7-Eleven that offers check cashing. Not all 7-Eleven stores provide this service, so it‘s best to call ahead or check online to confirm that your local 7-Eleven cashes checks.
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Bring the check and a valid ID. You‘ll need to bring the check you want to cash, of course. But you‘ll also need a current, government-issued photo ID (like a driver‘s license, state ID, passport, or military ID) to verify your identity.
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Endorse the check. On the back of the check, sign your name in the endorsement area. Some 7-Eleven stores may also ask you to write your ID number or phone number below your signature.
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Take the check to the register and ask to cash it. The cashier will inspect the check and likely ask to see your ID. They may also ask a few questions to confirm the check is legitimate and that you‘re the intended recipient.
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Pay the check cashing fee. The cashier will enter the check amount into their system and calculate the fee. They‘ll typically deduct the fee from the cash you receive, so if you‘re cashing a $500 check with a $5 fee, you‘ll get $495 in cash.
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Get your cash and receipt. Once the transaction is complete, the cashier will give you the cash and a receipt for the transaction. Be sure to keep the receipt for your records.
The whole process usually takes just a few minutes, as long as there are no issues with your check or ID. However, if the store is busy or if they have any reason to question the check‘s legitimacy, it could take a bit longer.
The Risks and Limitations of Cashing Checks at 7-Eleven
While cashing a check at 7-Eleven is undoubtedly convenient, there are some risks and limitations to consider.
Firstly, as mentioned, the fees can add up. If you‘re regularly cashing checks at 7-Eleven or similar retailers, those $3 to $10 fees can really start to eat into your check amount. Over the course of a year, you could easily spend $100 or more just on check cashing fees!
There‘s also always a slight risk of your check being declined, even if it‘s legitimate. This could happen if the check is missing required information, if 7-Eleven‘s check verification system flags it for any reason, or if the check amount exceeds 7-Eleven‘s check cashing limit (usually $500 to $1,000).
If your check is declined, you may need to take it to a different check cashing location or wait to deposit it in a bank account. And of course, if the check is fraudulent or bounces, you could be on the hook for the full check amount plus additional fees.
7-Eleven‘s Transact Prepaid Card: An Alternative to Traditional Check Cashing
If you don‘t have a bank account but find yourself frequently needing to cash checks, 7-Eleven offers another option: the 7-Eleven Transact prepaid Mastercard.
This prepaid debit card, offered in partnership with the financial services company Transact, allows you to load checks onto the card using the Transact mobile app. Once the funds are loaded, you can use the card to make purchases anywhere that accepts Mastercard, or withdraw the money from an ATM.
There are a few potential benefits to this approach. Firstly, you don‘t have to carry around a large amount of cash after cashing your check. The money is loaded onto your card electronically. Secondly, you can use the card to make online or over-the-phone purchases, bill payments, and more.
However, the Transact card does come with some fees to be aware of. There‘s a $3 fee to purchase the card, and a monthly maintenance fee of $4.95 (waived if you load $500 or more per month). You‘ll also pay ATM withdrawal fees, balance inquiry fees, and a card replacement fee if you lose the card.
Perhaps most importantly for our purposes, the Transact card charges fees for mobile check deposits. According to their fee schedule, the fee for a government or payroll check deposit is 2% (minimum $5), while other check types carry a 5% fee (minimum $5).
So while the Transact card can be a useful tool for managing your money without a bank account, it‘s not necessarily a cheaper alternative to 7-Eleven‘s traditional check cashing service.
Why a Bank Account is Often the Better Choice
Despite the convenience of check cashing services like 7-Eleven‘s, there‘s a good reason why financial experts often recommend opening a bank account instead.
In the long run, banking with a checking account is almost always cheaper than relying on check cashing services. Most banks allow you to deposit checks for free using a mobile app, ATM, or in person at a branch. And if you have direct deposit set up, your paycheck or benefits check can be automatically deposited into your account each pay period, with no fees at all.
Of course, not all bank accounts are free. Some do charge monthly maintenance fees, overdraft fees, ATM fees, and more. But many banks now offer low-cost or even free checking accounts, especially for customers who meet certain requirements like maintaining a minimum balance or using direct deposit.
If you‘re currently unbanked and frequently paying check cashing fees, it‘s worth exploring your banking options. Many banks and credit unions offer "second chance" checking accounts for customers who have had trouble with banks in the past. And some, like Capital One and Bank of America, even offer accounts specifically designed for low-income customers.
The Future of Check Cashing in a Digital World
As digital payment methods like mobile wallets, peer-to-peer payment apps, and online bank transfers become more popular, some experts predict that the check cashing industry may shrink in the coming years.
Indeed, the total number of checks written in the U.S. has been steadily declining for decades. According to the Federal Reserve, the number of checks paid declined by more than 7% per year between 2015 and 2018.
However, checks are still a common method of payment, particularly for payroll, government benefits, and some businesses. And as long as there are checks to be cashed, it‘s likely that services like 7-Eleven‘s will continue to play a role in the financial lives of millions of Americans.
That said, even 7-Eleven seems to be preparing for a future where digital payments are the norm. In 2018, they launched their own mobile wallet app, 7-Eleven Wallet, which allows customers to store payment methods, join loyalty programs, and make purchases using their smartphone.
Tips for Cashing Checks Safely and Affordably
If you do find yourself needing to cash a check, whether at 7-Eleven or elsewhere, here are some tips to keep in mind:
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Only cash checks from trusted sources. Be wary of cashing personal checks from people you don‘t know well, as they have a higher risk of bouncing. Government, payroll, and well-known business checks are generally lower-risk.
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Compare fees before cashing. Don‘t automatically go to the most convenient check cashing service. Take a few minutes to compare fees at different locations to find the best deal. Remember, even a 1% difference in fees can add up over time.
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Consider setting up direct deposit. If you‘re receiving regular checks from an employer or benefits provider, ask if they offer direct deposit. This allows the money to be deposited straight into your bank account or prepaid card, with no check cashing fees at all.
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Don‘t carry a large amount of cash. If you do cash a check, avoid carrying all the cash with you. Only take what you need immediately and keep the rest in a safe place, like a locked drawer at home. Better yet, consider using a prepaid debit card to store the funds electronically.
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Explore your banking options. As we‘ve discussed, opening a bank account is often the most affordable way to manage your money in the long run. Many banks now offer accounts with low or no fees, and some even offer incentives for opening an account. It‘s worth researching your options.
The Bottom Line
7-Eleven‘s check cashing service can be a convenient lifeline if you receive a check and don‘t have a bank account to deposit it in. With thousands of locations across the country, many of them open 24/7, 7-Eleven makes it easy to get your check cashed and get access to your money quickly.
However, that convenience comes at a cost. 7-Eleven‘s check cashing fees, while slightly lower than some competitors, can still add up over time. For frequent check-cashers, those fees can easily total hundreds of dollars per year.
If you do need to cash a check at 7-Eleven, be sure to bring a valid ID, endorse the check, and be prepared to pay a fee of around 1% to 2% of the check amount. You can also consider 7-Eleven‘s Transact prepaid debit card as an alternative way to load checks onto a card electronically, although it too comes with fees.
Ultimately, while 7-Eleven and other check cashing services fill an important short-term need, most financial experts agree that having a bank account is the better long-term solution. Many banks now offer low-cost or free checking accounts, and the ability to deposit checks for free using a smartphone app.
If you‘re currently relying on check cashing services, I‘d encourage you to explore your banking options. You may be surprised at how affordable and accessible banking has become. And over time, the savings on check cashing fees alone could add up to a significant chunk of change.
