How to Cash A Payroll Check Without a Bank Account

Employees without direct deposit need to cash their paychecks, too.

Many employers offer their employees direct deposit rather than the traditional paper check. Direct deposit electronically deposits pay into a bank account designated by the employee each pay date. If the business is a small one, however, the employer might issue only an actual payroll check. Some employees prefer a paper payroll check instead of direct deposit, while others might not qualify for a bank account. In these instances, the employee must find another way to cash the paycheck.

Instructions

1. Determine which bank the check is drawn on. Visit the institution, if it is located near you. Have identification, such as your driver's license, passport or military ID. As long as the bank can verify your identity, the payer's signature and funds availability, your check should be cashed immediately. If the bank is not close, check to see if they are affiliated with a local bank that would cash your check.

2. Use a check cashing company or a grocery market or convenience store that offers payroll check cashing services. Be prepared to pay a minimal fee, which is based on a percentage of the check amount.

3. Deposit the check into third party's bank account. If you take this route, use someone you trust. Call the bank first to see if they will accept them. If so, endorse the back of the check with "Pay to the order of" and the person's name. Then, sign it. However, before you can receive the funds, you have to wait for the check to clear the bank, generally three to five business days.

Tips & Warnings

• When using a local bank to cash your paycheck, ask about their procedures for opening a bank account. Depending upon your situation, they might be willing to work with you.

References

• Econ Council: Your First Paycheck

Resources

• Read this Article in Spanish