• Check cashing places may be convenient, but they charge a fee.signing check image by jovica antoski from Fotolia.com
  
  Many people use check-cashing places to cash payroll, government and personal checks. Often, it is those without a traditional bank account who patronize such establishments. While check-cashing places offer convenience, that convenience comes with a price.
  
  

Advantages

• Convenience is the benefit often cited when consumers are asked why they use check-cashing services. There are both freestanding check-cashing places and those located inside of other businesses, such as grocery stores.
  
  These businesses are usually open later than a traditional bank and most will cash checks instantly as long as the customer has a picture ID.
  
  There are no monthly fees as there would be with most bank accounts. Instead, consumers pay a fee only when they have a check to cash. For someone who doesn't cash checks very often, this could save them money.
  
  

Disadvantage

• The way that check-cashing places make money is to charge a fee for every check that they cash. This fee is usually a percentage of the check. The percentage charged varies from place to place and often depends of the type of check that is being cashed. For example, the fee may be lower for a government check than for a personal check.
  
  Fees typically range from 1% to 5% of the face value of the check. If you use a check-cashing place to cash all of your payroll checks, that essentially means you will take home 1% to 5% less than you would if you cashed your checks at a traditional bank.
  
  

Alternatives

• One alternative to using check-cashing places is to open a banking account. If this is not possible, there are other ways to avoid having to use check-cashing places.
  
  You may be able to cash the check at the bank from which the check was drawn. If it is a local bank, this is a great alternative to using a check-cashing place. Most banks will cash checks drawn on their bank, even for those who are not customers. Some do not charge a fee. Those that do typically charge a small flat fee of $5 to $10 rather than a fee based on a percentage of the check.
  
  If you have a friend of family member with a traditional banking account, you could ask them to cash checks for you. They would simply deposit the check into their account and give you the money.
  
  If you are cashing payroll checks, ask your employer if he would mind cashing your checks. Many employers will not have a problem doing this for their employees.