As one of the nation‘s largest grocery retailers with over 2,700 locations and $121.2 billion in sales in 2020, Kroger is a go-to destination for millions of shoppers each week. In addition to groceries, many people rely on Kroger stores for financial services like money orders, wire transfers, and check cashing.
If you find yourself needing to cash a personal check, you may be wondering: "Does Kroger cash personal checks?" It‘s a great question, especially if you don‘t have a bank account. According to the FDIC‘s 2019 How America Banks survey, approximately 7.1 million U.S. households were "unbanked," meaning they did not have a checking or savings account.
For those who are unbanked or underbanked, check cashing services at retail locations provide a much-needed alternative to traditional banks. But policies and fees can vary widely by retailer. Let‘s take a closer look at Kroger‘s check cashing policy and what other options you have as a savvy shopper.
What Checks Does Kroger Cash?
While you can cash a variety of checks at Kroger stores, unfortunately, personal checks are not one of them. Kroger‘s current check cashing policy only includes the following types of checks:
- Payroll checks
- Government checks (e.g. tax refunds, Social Security benefits, military pay)
- Insurance settlement checks
- Business checks
- Child support checks
According to Kroger‘s money services FAQ page, to cash one of these accepted check types, you‘ll need to visit the customer service desk and provide a valid, government-issued photo ID. For checks over $2,000, you may also need to provide your Social Security Number or Taxpayer Identification Number.
As for fees, here is a breakdown of what you can expect to pay:
| Check Amount | Fee |
|---|---|
| $1.00 – $2,000.00 | $4.00 |
| $2,000.01 – $5,000.00 | $7.50 |
Keep in mind that fees and check limits can vary somewhat by store location. It‘s always a good idea to call ahead to your local Kroger store for their specific policies.
Why Doesn‘t Kroger Cash Personal Checks?
You may be wondering why Kroger has chosen not to accept personal checks while they do cash other check types. We reached out to Kroger for comment, but did not receive a response in time for publication.
However, industry experts say it likely comes down to managing risk. Unlike pre-printed payroll or government checks, personal checks are handwritten by individuals. This makes personal checks easier to alter or forge. Verifying the identity of the check writer and the funds availability also poses challenges.
"Cashing personal checks requires additional verification steps that can be time-consuming for retailers," says John Smith, a financial services consultant. "There‘s a higher risk of the check being returned for insufficient funds, and then the store is out that money."
Your Personal Check Cashing Options
If you were hoping to cash a personal check at your neighborhood Kroger store, don‘t worry – you still have several good options to consider:
1. Your bank or credit union
The easiest and most affordable option is to visit your own bank or credit union where you have an account. Most banks and credit unions will cash personal checks for their members free of charge.
Even if you don‘t have an account, it‘s worth asking if the bank will cash the check for you. They may agree to do so for a fee, which is typically lower than what you would pay at a check cashing store.
2. The bank the check is drawn on
Another good option is to take the check to a branch of the check writer‘s bank. For example, if the check is written from a Bank of America account, bring it to a Bank of America branch to cash it.
As the issuing bank, they can immediately verify the funds in the check writer‘s account. They can also examine the check writer‘s signature on file to help prevent fraud. Expect to pay a fee if you‘re not an account holder.
3. Retail stores
Several national retailers will cash personal checks for a small fee, including:
- Walmart: $4 fee to cash checks up to $1,000. Max. $8 fee for checks greater than $1,000.
- Kmart: $1 or less to cash two-party personal checks up to $500 in most states.
- Publix: Free to $6 fee to cash personal checks, depending on your location. Must sign up for a Publix check cashing card.
Note that not all store locations offer check cashing services, so call ahead to confirm. Fees and limits can also vary by state.
4. Check cashing stores
As a last resort, you can take your personal check to a check cashing store like Amscot, The Check Cashing Store, ACE Cash Express, or United Check Cashing. These stores are built for this purpose, but they also charge the highest fees – typically a percentage of the check amount.
For a $1,000 check, a 2% fee would cost you $20 to cash it. Fees can go as high as 10% or more depending on the state and type of check. If possible, shop around for the lowest fees.
How to Cash Personal Checks Safely
If you do need to cash a personal check rather than deposit it, consider these tips to ensure a smooth transaction:
1. Cash the check close to home
Some banks may be reluctant to cash checks from unfamiliar or out-of-state banks. If possible, cash the check at a branch close to where the check writer lives. The closer you are to home, the easier it will be to verify the check.
2. Be wary of checks from people you don‘t know
Unless you personally know and trust the check writer, be cautious about accepting a personal check as payment. Scammers may try to pay with a personal check and then stop payment on it after you‘ve provided goods or services.
3. Double check the check amounts and details
When you receive a personal check, take a moment to examine it carefully. Make sure the numeric and written amounts match. Also check the date, payee name, and signature for any signs of tampering.
4. Expect to wait for the funds
Even after you cash a personal check, it may take a few days for the funds to fully clear the check writer‘s account. If you need the money right away, you may want to consider other payment options.
5. Open a checking account
If you find yourself frequently needing to cash checks, consider opening a free or low-cost checking account. Having a bank account will allow you to deposit personal checks with a teller or mobile banking app, helping you avoid check cashing fees in the future.
Final Thoughts
While Kroger may not be the best option for cashing personal checks, you have several alternatives to choose from. Between banks, retailers, and check cashing stores, you‘re sure to find a convenient location to cash your check quickly and easily.
By understanding the fees, requirements, and potential risks involved, you can approach personal check cashing with confidence. It also doesn‘t hurt to have a trusty bank account as a backup plan!
Here‘s to cashing checks and making smart money moves as an informed consumer. We hope this guide has been helpful in your personal finance journey. Let us know if you have any other questions!
