Can cheque-Cashing Services Provide a Banking Alternative?

I know a couple of people who use cheque-cashing services, and their main reason for doing so is that local banks will not do any type of business with them. Those individuals built up an outsized history of overdrafts and other such misuses of the bank’s services until they had accumulated a mountain of unpaid overdraft fees and any other expenses, because of which the bank simply cut all sorts of ties with them. They now use check-cashing services, for better or worse, for his or her financial needs.

First of all, let’s check out what the check-cashing industry is and therefore the services it provides, because it’s something that a lot of people that are “doing things right” in their financial life could also be unacquainted .

Cash chequing service offers:

A check-cashing service offers a variety of monetary services, many of which you'd expect to seek out at a typical bank. Cheque cashing is clearly just one, but others include payday loans, and other short term loans, money orders, bill payments, currency exchange, notary services, public transportation passes, mail services, credit cards and prepaid debit, and so on. The precise services vary from business to business and even location to location.

At a check-cashing service, the most important thing you’ll notice is that the services are listed on a menu, not too different from what you’ll find at a quick food service, and every service is denoted with a particular price. Cost of those are often in dollar amounts, but sometimes, in such scenarios of the cheque cashing, it’s listed as a percentage of the face value of the cheque.

What a check-cashing service typically doesn’t offer may be a checking or bank account. They do not hold money for anyone. They won’t enable you to write down checks on behalf of an account which will or might not have money in it.

Here’s how I check out the 2 as compared . A cheque-cashing service delivers all of the services of a bank that do not require extending trust to the customer; instead, all the transactions are done over the counter in return of a transparent fee. What sets a bank apart is that some bank services are oriented around extending some trust to the customer, but the fees are available whenever a customer does things that are outside of a narrow list of things, and therefore the fees are often unclear.

Cheque cashing service cost:

Cheque-cashing services tend to charge very basic fees for his or her services and what people offer often seems really high compared to traditional banking services. Very often , that’s where the comparison stops – check-cashing services appear to be a ripoff.

The thing is, banks will often take your money down too. they only roll in the hay during a more subtle way, through other fees. It’s no surprise that banks usually charge ATM fees and account maintenance fees and overdraft fees. Many of the non-check-cashing services that they provide also undercut banks, like the value of a postal order or a prepaid open-end credit . you furthermore may don’t typically need to await the services there, while on the opposite hand you’ll sometimes need to wait several days for a check to deposit.