If you‘re among the millions of Americans who don‘t have a traditional checking account, cashing a personal check can be a challenge. Fortunately, Walmart offers a convenient and affordable solution. The retail giant provides check cashing services at its stores nationwide, allowing you to quickly access your funds without a bank account.
In this comprehensive guide, we‘ll dive into the details of Walmart‘s check cashing services, including:
- What types of checks you can and can‘t cash
- Fees and limits to be aware of
- How the check cashing process works
- Pros and cons vs. other check cashing options
- Expert tips for saving money and staying secure
By the end, you‘ll have a clear understanding of whether Walmart check cashing is right for you and how to make the most of this service.
The State of Check Usage and Unbanked Households
Before we get into the specifics of Walmart‘s offering, let‘s set the stage with some context on check usage and the unbanked/underbanked population in the U.S.
While check usage has declined in recent decades, many Americans still rely on paper checks as a form of payment. According to the 2019 Federal Reserve Payments Study, Americans wrote 14.5 billion checks in 2018 with a total value of $25.8 trillion.
Checks remain especially common among older adults, small businesses, and those without access to digital payment tools. The 2019 FDIC Survey of Household Use of Banking and Financial Services found that 14.1% of households had used paper checks to pay bills or make purchases in the past 12 months.
However, a significant portion of the population faces barriers to cashing these checks through traditional bank accounts. The same FDIC survey revealed that 5.4% of U.S. households (approximately 7.1 million) were "unbanked," meaning they had no checking or savings account. Another 18.7% of households (24.2 million) were "underbanked," meaning they had an account but also used alternative financial services like check cashing or payday loans.
Unbanked and underbanked rates are higher among lower-income, less-educated, younger, and non-white households. These consumers often rely on alternative financial service providers like Walmart for their banking needs.
Walmart‘s History in Financial Services
Walmart first began offering financial services in the mid-2000s, starting with money transfers, check cashing, and bill payments. These offerings were aimed at the retailer‘s core customer base of low- and moderate-income households, many of whom lacked access to traditional banking.
Since then, Walmart has gradually expanded its financial services menu while keeping prices low to remain competitive against other players. A key development was the launch of the Walmart MoneyCard, a prepaid debit card, in 2009.
"Walmart has an important role to play in the financial services space," said Daniel Eckert, Senior Vice President of Walmart Services & Digital Acceleration, in a company press release. "We‘re using our size and scale to make financial products and services more affordable and accessible for millions of Americans."
Today, Walmart offers a full suite of financial products and services, including check cashing, money transfers, bill pay, money orders, tax preparation, and more. These services provide a lifeline for the unbanked and underbanked who may have few other affordable options.
What Types of Checks Does Walmart Cash?
Walmart check cashing is available for a wide variety of check types. These include:
- Payroll checks
- Government checks (tax refunds, Social Security benefits, unemployment insurance)
- Personal checks (up to $200)
- Insurance settlement checks
- 401(k), retirement account, and pension distribution checks
- MoneyGram money orders purchased at Walmart
- Cashier‘s checks and bank draft checks
Pretty much any preprinted check made out in your name can be cashed at Walmart. The main exceptions are checks made out to "Cash," starter checks, business checks, and personal checks over $200.
Walmart Check Cashing Fees and Limits
Of course, Walmart‘s check cashing services aren‘t free. The retailer charges a small fee for most check types, which varies based on the amount of the check:
| Check Type | Fee |
|---|---|
| Preprinted checks <= $1000 | $4.00 |
| Preprinted checks > $1000 | $8.00 |
| Two-party personal checks | $6.00 (limit $200 per check) |
| Tax refund/stimulus checks | No fee (Jan-Apr) |
During tax season (January to April), Walmart waives its fee for cashing tax refund and stimulus checks up to $7,500. For the rest of the year, these checks are subject to the $8.00 fee for amounts over $1,000.
It‘s worth noting that Walmart‘s check cashing fees are generally lower than those charged by dedicated check cashing stores, which often take a percentage of the face value. For example, The Check Cashing Store charges 1.99% plus $1 to cash payroll and government checks, meaning a $1,000 check would incur a fee of $20.90.
However, Walmart‘s fees are still higher than what you‘d pay at a bank or credit union, most of which offer free check cashing for their account holders. For the unbanked though, Walmart‘s prices are hard to beat.
In terms of check cashing limits, Walmart has a daily maximum of $5,000 for most check types, or $7,500 for tax refund checks from January to April. Two-party personal checks are limited to $200.
These limits are lower than those at some other check cashing providers. For example, ACE Cash Express cashes checks up to $20,000 in some states. However, Walmart‘s limits should be sufficient for most customers‘ needs.
How to Cash a Check at Walmart
If you‘ve never cashed a check at Walmart before, don‘t worry – the process is straightforward. Here‘s a step-by-step guide:
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Bring your endorsed check and a valid, government-issued photo ID (driver‘s license, passport, etc.) to the customer service desk or Money Center at Walmart. Some locations have dedicated Money Center entrances with extended hours.
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Fill out a short form with your name, address, phone number, and Social Security number (used for identification purposes and to comply with anti-money laundering regulations).
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The associate will examine your check and ID to verify their authenticity. For personal checks, they may contact the check issuer to verify funds are available.
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Once approved, the associate will print a receipt showing the check amount and fee. Review and sign the receipt.
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Receive your cash and take your receipt. Count the money before leaving the counter to ensure it‘s the correct amount.
The whole process usually takes under 10 minutes if there are no issues with your check. To avoid delays, make sure your ID is current, the check is properly filled out and endorsed, and you know your Social Security number.
Pros and Cons of Cashing Checks at Walmart
Now that we‘ve covered the nitty-gritty details, let‘s zoom out and consider some of the advantages and disadvantages of using Walmart for check cashing vs. other options.
Advantages of Walmart check cashing:
- Widely available – With over 4,700 locations that cash checks, odds are there‘s a Walmart near you.
- Convenient hours – Most Walmart stores are open from 8 a.m. to 8 p.m. or later, seven days a week. This is much more accessible than typical bank hours.
- Low, transparent fees – Walmart charges a flat fee as low as $4 for checks up to $1,000. Check cashing stores and payday lenders often charge a percentage of the check amount.
- Variety of checks accepted – Walmart cashes everything from payroll checks to tax refunds to insurance settlements. Some other providers only cash certain types of checks.
- Trusted brand – As the world‘s largest retailer, Walmart has a strong reputation and robust security measures. You‘re unlikely to be scammed or shortchanged.
Disadvantages of Walmart check cashing:
- Higher costs than banks – If you have a checking account, you can usually deposit checks for free using a smartphone app. Walmart‘s fees can add up if you‘re cashing checks frequently.
- Limited relationship – Walmart can cash your checks, but they can‘t help you build savings, access credit, or achieve long-term financial goals like a bank can.
- Potential for long lines – With so many services offered, the Money Center line at Walmart can get lengthy, especially on paydays or holidays. Expect a wait during peak times.
- No recourse for bounced checks – If you cash a check at Walmart that later bounces, you‘re responsible for paying it back. Banks will sometimes waive fees for bounced checks if you‘re a longstanding customer.
Clearly, whether Walmart check cashing makes sense for you depends on your individual circumstances and needs. But for millions of unbanked and underbanked Americans, it remains a valuable service.
How to Save Money on Check Cashing
Walmart‘s check cashing fees are already among the lowest around, but there are still some ways you can save even more as a smart shopper:
- Cash larger checks – The fee for a $1,000 check is the same as a $500 check, so you‘ll pay a lower percentage the higher the amount. Cash your biggest checks at Walmart and smaller ones elsewhere.
- Take advantage of the MoneyCard – If you cash a check and load the funds onto a Walmart MoneyCard, the check cashing fee is waived. There‘s no monthly fee for the card if you direct deposit at least $500 per month.
- Cash tax refund checks from January-April – Walmart waives its fees for tax refund checks up to $7,500 during tax season. Wait to cash yours until after January 1 to save up to $8.
- Open a bank account – Easier said than done for some, but if you can qualify for a free checking account with mobile deposit, you can eliminate check cashing fees entirely. Some banks and credit unions have second chance programs and low initial deposit requirements.
The Future of Check Cashing
As digital payment options like Venmo, Cash App, and Zelle have grown, paper check usage has steadily declined. One 2020 survey found that 38% of consumers are using paper checks less since the COVID-19 pandemic began.
However, don‘t expect checks – or check cashing services – to die out anytime soon. Millions of older Americans still prefer checks, and certain industries like property management and government agencies remain heavily dependent on them for payments.
Still, check cashing providers will need to evolve to remain relevant amid changing consumer preferences and potential competition from digital-only newcomers. Expect to see more emphasis on mobile apps, low-cost bank accounts, and other financial wellness tools in addition to pure check cashing.
Walmart seems well-positioned to adapt to these trends, given its massive scale and growing suite of tech-enabled financial products. The retailer has already experimented with interactive personal finance tools and even earned wage access for employees.
"We‘re uniquely positioned to serve a segment of the population that traditional banks have overlooked," said Julia Unger, Vice President of Financial Services at Walmart, in a statement last year. "We‘re constantly looking for new ways to expand access to essential financial services through products and partnerships that reflect our customers‘ evolving needs."
Frequently Asked Questions
We‘ve covered a lot of ground in this guide, but you may still have some lingering questions about Walmart check cashing. Here are answers to a few common queries:
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Can I cash a check at Walmart without a government ID? No, a valid government-issued photo ID is required for all check cashing transactions at Walmart. This is part of the company‘s security and compliance procedures.
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Does Walmart cash third-party checks? Generally no, Walmart only cashes checks made out to you by name. However, Walmart does have a special $6 fee tier for two-party personal checks up to $200. So if you have a check made out to you by a friend or family member, you can cash it for that flat fee.
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Is there a limit on the number of checks I can cash at Walmart? There‘s no strict limit on the number of checks you can cash per day, but total daily check cashing transactions can‘t exceed $5,000 (except during tax season). If you have numerous small checks it‘s best to cash them at the same time to minimize fees.
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Do I have to cash my check at the Walmart where I shop? Nope, you can cash your check at any Walmart location that offers check cashing services. There‘s no requirement that you purchase anything or be a regular Walmart customer.
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What time does the Walmart Money Center open and close? Hours vary by location, but most Walmart Money Centers open at 8 a.m. and close at 8 p.m. or later, Monday through Saturday. Sunday hours are typically more limited (10 a.m. to 6 p.m.). Check with your local Walmart for specific hours and holiday closures.
The Bottom Line
Walmart check cashing is a lifeline for millions of unbanked and underbanked Americans who need quick, affordable access to their funds. While it‘s not a substitute for a full-service bank account, it can be a helpful tool for those who receive occasional paper checks and can‘t deposit them electronically.
As long as you understand the fees, bring the proper ID, and follow the endorsement instructions, cashing a check at Walmart is a simple process. Just be mindful of the costs if you‘re relying on this service frequently, as they can add up over time.
If you have the option to sign up for direct deposit or mobile check capture with a free bank account, that‘s usually the most cost-effective approach. But if not, Walmart check cashing remains one of the best deals in the business.
The retail giant‘s growing lineup of financial services and commitment to serving overlooked populations make it a formidable player in the industry. As digital payments continue to disrupt traditional banking, expect Walmart to keep innovating on behalf of consumers‘ evolving needs.
Ultimately, whether you‘re cashing a personal check from grandma or a payroll check from your employer, Walmart has you covered with a convenient, low-cost solution. We hope this in-depth guide has equipped you with the knowledge and confidence to take advantage of this valuable service should the need arise.
