What are checks made out to cash?
The short answer is they are checks made out to cash, and it’s very easy to see why this would be a mistake on your part. Checks written to cash are almost always non-refundable. In other words, if the company doesn’t cash the check by the end of the business day, they can’t give you your money back.
This is why it’s a good idea to call and ask the payer to pull the check from the bank before you deposit it. However, if you’re like most of the people I’ve seen do it over the years, you’ll simply deposit the check, never giving a second thought to the fact that it won’t be cashed at all. Then the company, and in many cases, the merchant themselves, end up holding the check until you call to get your money back, usually within a couple of days of depositing it.
Why don’t banks like checks made out to cash?
While there’s a lot of reasons that customers are using checks less frequently, the most compelling reason for that is the sheer cost. Making a check, from writing it to counting it, involves extra labour on the part of the bank or business. That’s not all of it, but it does add up.
Customers don’t want to pay more money to get the service of using checks, and the small-business owners who love them for that reason, want to have cheaper alternatives. There are several ways that banks can bring that down, with the most cost-effective being by eliminating the need for checks. Some small-business owners still rely on checks, so banks have tried to keep them viable. What they haven’t done, though, is make it affordable.
How to deposit checks made out to cash
Banks will make you sign the back of the check. Because it’s being “cashed,” you can’t deposit it back into the other person’s bank account You have to wait at least 10 days before you can send the check back to them If the check bounces, you have to wait 10 days before you can try again Click here to see the full infographic on how to deposit checks made out to cash.
Why you shouldn’t write checks made out to cash
Let’s say you got a paycheck today for $900. There is $1,600 leftover, not a whole lot, but you feel like you should get something to give to someone. Well, in most states, $1,600 does not qualify for a cashier’s check, so you have to convert it to another form of payment, such as a bank deposit. You put the check in the bank. You go to the grocery store and buy a frozen dinner and some toilet paper.
You then drive it to your neighbour and drop it off. After taking the cash to the bank, you now have $1,600 plus $1,600 in coins and bills, which is not an equal amount of money. So you immediately go and pay a friend to cut the lawn or shovel snow. Now you have $2,600 in cash, plus $900 worth of coins and bills. Isn’t that easier?
Where can I cash a check made out to cash?
You can cash a check written to cash as long as it is payable to cash. You should note that checks made payable to cash are considered “voidable” and have a reduced value. If the person or business making the check is not based in the state where you live, or the check is from a state where the person or business is based but is not a resident, the check may not be payable to cash and you may want to ask the bank to void the check.
How to cash a check made out to cash if the person or business is based in my state, and if the check is payable to cash. There are two options for cashing a check made payable to cash. You can either mail the check to the person or business or have a business or bank official pay the check to you. How much will I have to pay to cash a check?
What should I bring to the bank when cashing a check made out to cash?
You should bring the name of the person or business that it is payable to, a driver’s license or state identification card, the amount of the check, and your name, address, and the routing number or account number of the account from which the check was drawn. How do you cash a check that is made payable to cash? You cash a check by placing it in a deposit envelope or cashier’s check.
If it’s a check that is made payable to cash, you fill it out and then address it to cash at the institution where you deposited the check. You also can give the name and address of a person or business that it is payable to, but the amount should not exceed the amount of the check and the name of the person or business should not be included.
What should I expect when cashing a check made out to cash?
Generally speaking, you will only receive a refund for any money you’ve actually received through the bank rather than the difference between the amount you paid to get the check made payable to “Cash” and the amount of the refund. It’s worth noting that some banks will vary in their refund process, so check with your local bank for details before cashing a check.
Should I cash a check made payable to cash? There is a potential downside to cashing checks that are payable to “Cash.” For example, there are no agreed-upon rules in place regarding how much of a check is due to cash, and thus if you cash a check payable to cash that is partially written in check form, you could be held liable for some or all of the remaining check’s balance.
Here’s a scenario that might cause you to have flashbacks to an episode of Seinfeld. You’re at the bank withdrawing funds for your kid’s college tuition, and there’s an unfamiliar check for $3,967. The teller goes through a long list of questions to make sure you are who you claim to be and that you’re making a legitimate payment, and then she asks, “Do you want to cash this check for cash?” Given that you don’t know where the funds are coming from, you have no idea who’s really cashing the check, and you can’t imagine anyone would be so stupid as to cash a fraudulent check made payable to “Cash” rather than the name of a person or business. You politely decline and request a written letter of guarantee from the account holder.
If you want to become an entrepreneur, you have to be creative, try out new ideas, and take risks. If you try to follow the rules and not become a jack of all trades, you’ll never stand out, and it will be nearly impossible to succeed.