If you‘ve recently opened a checking account, you were likely given a small set of starter checks to hold you over until your personalized checks arrive. These generic checks feature your account and routing numbers, but not your printed name and address. While they are a convenient stopgap, starter checks aren‘t accepted by all merchants due to their higher risk of fraud.
Many customers are curious if the nation‘s largest retailer, Walmart, will take starter checks as payment or cash them through their MoneyCenter services. We dug deep into Walmart‘s policies to get you the answer, along with everything else you need to know about using starter checks in your daily life.
Walmart‘s Official Stance on Starter Checks
After reviewing Walmart‘s check cashing policies and speaking with multiple store associates, we can confirm that Walmart does NOT accept starter checks under any circumstances. This applies to both in-store purchases and check cashing at the Walmart MoneyCenter.
Like many large retailers, Walmart has implemented this policy to reduce their risk of check fraud and bounced checks. Starter checks lack the personal information that printed checks contain, making them easier to replicate or use fraudulently. With millions of check transactions processed per year, Walmart could lose substantial revenue by accepting risky starter checks.
"Starter checks are one of the most frequently counterfeited financial instruments," according to Paul Krieger, a former vice president of loss prevention for a major department store chain. "Criminals can easily duplicate the routing and account numbers to create fake checks. Most large retailers have made the business decision not to accept them."
However, Walmart isn‘t completely averse to accepting checks overall. At their MoneyCenter locations (typically near the front of each Supercenter), you can cash the following types of checks for a small fee:
- Pre-printed payroll checks from your employer
- Government checks (tax refunds, Social Security benefits, stimulus payments)
- Cashier‘s checks purchased from a bank
- Insurance settlement checks
- 401(k), retirement account, or pension distribution checks
- Personal checks (must be printed with your name and address)
- Two-party personal checks (printed, not handwritten)
To cash one of these checks at Walmart, simply head to the MoneyCenter desk or customer service area with a valid, government-issued photo ID in hand. You‘ll pay a fee of $4 for checks up to $1,000 and $8 for checks between $1,001 and $5,000. Any checks above $5,000 cannot be cashed at Walmart.
For comparison, here are the check cashing fees at some of Walmart‘s top competitors:
| Retailer | Check Amount | Fee |
|---|---|---|
| Kroger | $2,000 max | $4 |
| Kmart | $500 max | $1 |
| H-E-B | $3,000 max | $3 |
| Publix | Varies by state | Free (with Publix debit card) |
As you can see, Walmart‘s check cashing fees are in line with or slightly higher than other supermarkets and discount stores. However, they do offer a higher maximum check amount than most.
Check Usage on the Decline
While checks were once the dominant form of non-cash payment, their usage has steadily declined over the past two decades. According to the most recent Federal Reserve Payments Study, check payments decreased by over 7% per year from 2015 to 2018. In contrast, credit card and debit card payments grew by 10% and 6% respectively during that same period.
Younger consumers are especially unlikely to use checks regularly. A 2020 survey by the American Bankers Association found that 70% of adults under 35 prefer paying with debit cards, credit cards, or cash over checks. Only 5% of Millennials and Gen Z named checks as their top payment choice.
However, checks are still prevalent among older demographics. Adults over 65 write three times as many checks per month as those under 35. Checks also remain a popular method for paying rent, utilities, and other bills by mail.
So what does this mean for starter checks? As check usage dwindles, many retailers see less incentive to take on the fraud risk of accepting starter checks. If you do choose to open a checking account, it‘s wise to order personalized checks right away to avoid getting turned away at the register.
Stores That Accept Starter Checks
Though starter checks aren‘t welcome everywhere, some major retailers are less stringent about accepting them for purchases. Your odds are best at stores that specialize in home improvement, office supplies, and wholesale clubs. A few specific chains known to take starter checks include:
- Costco
- Sam‘s Club
- Lowe‘s
- Home Depot
- Office Depot/OfficeMax
- Staples
- Best Buy
- Kmart
Keep in mind, even the retailers who take starter checks will require valid photo identification that matches the account holder name. It‘s also a good idea to call your local store directly to inquire about their most current policy, as it can vary by location.
If you‘d rather play it safe, your best course of action is depositing your starter checks at a bank or credit union. As long as the account is in your name, virtually all banks will accept your starter checks without any hold times on the funds.
Ordering Personalized Checks
Once your new checking account is open, you‘ll want to put in an order for printed checks as soon as possible. These will feature your name and address, making them much more likely to be accepted by retailers and billers.
Many banks allow you to order checks directly through them, either online or at a branch location. Your first box of basic checks may even be free or discounted as part of your new account perks. However, ordering through your bank isn‘t always the cheapest option.
An increasing number of customers buy checks from third party printers for a fraction of the cost. Walmart offers a wide variety of personal check designs at Walmart.com, with prices starting under $10 per box. Other popular retailers like Costco and Sam‘s Club sell bulk check orders at a discount to their members.
When buying from a third party, just be sure to have your bank routing and account numbers handy. You‘ll also want to verify that the checks meet the security standards put out by the Check Payment Systems Association (CPSA). Look for a padlock icon and the words "Security Checks" on the ordering page.
Building Credit with Starter Checks
If you‘re exploring starter checks, there‘s a good chance you‘re also relatively new to banking and establishing credit. While checks aren‘t a direct factor in your credit score, using them wisely can help build a positive payment history indirectly.
For example, consistently writing checks for your rent or utility bills by the due date each month helps demonstrate financial responsibility. Some landlords and creditors may report your on-time payments to the credit bureaus, giving your score a boost.
Keeping your checking account in good standing is also crucial. Bouncing checks frequently or letting your account go negative can lead to ChexSystems records, which banks review before granting new accounts. Avoiding overdrafts and always having sufficient funds to cover your checks will serve you well when it‘s time to apply for loans down the road.
Alternatives to Starter Checks
If you‘re looking for more universally accepted methods of payment, there are plenty of modern alternatives to starter checks. A few options worth considering:
Prepaid debit cards – These work similarly to bank-issued debit cards, but aren‘t linked to a checking account. You can load money onto them at participating retailers or online. Some prepaid debit cards even allow you to have your paycheck direct deposited to them.
Money transfer apps – Platforms like Venmo, Cash App, and Zelle make it easy to send money to friends and businesses straight from your smartphone. Just link up your bank account or load funds onto the app to start paying electronically.
Secure online payment services – If you do a lot of online shopping, you may want to get set up with a service like PayPal or Google Pay. These allow you to check out at thousands of e-commerce sites without inputting your financial details every time.
Electronic billing – For recurring expenses like utilities, insurance, or subscription services, see if you can set up an automatic electronic funds transfer from your checking account. This eliminates the need for a physical check while ensuring you never miss a payment.
Final Thoughts
While starter checks can be a useful stopgap when you‘ve just opened a checking account, they‘re not the most practical payment method for everyday purchases. As we‘ve covered, Walmart and numerous other major retailers simply don‘t accept them due to fraud concerns. Unless you enjoy getting turned away at the checkout line, it‘s best to limit your starter check usage to the few merchants who take them or depositing them at your bank.
If you do choose to use a starter check at a participating store, always bring along a government-issued photo ID. The merchant will likely want to verify that the name on your ID matches the account holder information. It‘s also wise to call ahead to the specific location to inquire about their starter check policy, as it can vary from store to store (even within the same retail chain).
For the most hassle-free shopping experience, make it a priority to order personalized checks shortly after opening your checking account. In the meantime, take advantage of payment alternatives like debit cards, mobile wallets, and online money transfer services. While not as ubiquitous as they once were, checks are still a valuable financial tool to have at your disposal – just make sure they have your name on them first.
