How to Cash a Check: A Step-by-Step Guide

Identify the type of check you have to cash

The first step will be to carefully read the check that you have been given and verify what type of information you need to provide in order to cash it according to the banking institution you will go to. Among the most important types of checks are: certified checks, cashier’s checks, payroll, deferred, crossed, traveler and bearer payment. Knowing them will help you carry out a safer and more effective transaction.

Where to cash a check

There are different ways to cash a check, so you won’t always need to go to the bank. See if it can be deposited into an ATM or cashed at a retail store. When doing so, it is essential to verify that you have the necessary information to carry out this transaction safely, since not having a piece of information could put your money at risk.

Verify that the check is valid and has funds

One of the downsides of cashing a check is that you don’t always have control over the amount of funds the issuer has, which could put you at financial risk. Verify with the person who issued the check that the funds are in their account, otherwise, you may be subject to a penalty that can range from $30 to $60. It could even result in the total closure of your bank account.

Cash the check as soon as possible

One piece of advice given by experts is to cash a check as soon as it reaches your hands, because the faster you make this transaction, the less likely you are to be a victim of fraud. If you cannot go to a banking institution, it is best to consider the option of depositing it through a mobile app.

If the check is nominative

Nominative checks can only be cashed through a bank account. They can never be cashed by someone other than the official beneficiary, which makes it a safer option than others. If the beneficiary is unable to collect the money, then they must to endorse the check to a third party who can carry out the transaction by presenting official identification.

If the check is to the bearer

The bearer check is, without a doubt, the most common type of check. it does not contain specific information about the beneficiary, and can be collected by anyone who has it. In order to collect it, it is necessary to go to a banking institution which will verify that the check has sufficient funds and that all the information provided is legitimate.

A crossed check

Like other types of checks, crossed checks cannot be cashed at a bank teller, but must be deposited into an account in the name of the person to whom it is written. In order to successfully collect a crossed check, all the information included on it must fully coincide with the official identification provided by the beneficiary.

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