In a time of online banking, cashing a check can be done from the comforts of your own home. There are many check deposit apps. Many like Venmo and Zelle are backed by big financial corporations and banks.
As a result, do check cashing mobile apps require a bank account?
Not necessarily. There are online banks with mobile check deposits, but you do not have get them since it warrants opening a bank account. Most peer-to-peer financial apps will allow you to cash a check without having a bank. Besides their fast, secure and convenient approach to check cashing, here is how they work in general.
How Do Instant Check Cashing Apps Work
Checks clear faster with mobile deposit. Although check deposit apps differ in policies, they operate on the same model. Below is a step by step process of their model of operations.
1. Download the Check Deposit App
You download the check cashing mobile app. It could be PayPal, CashApp or other ones out there. All of them are free to download, especially in the United States of America. If it is not free to download, I would be wary of such an app.
2. Create An Account
You are required to sign up for an account before using such an app. This is in accordance to a federal regulation. You are dealing with checks which is known to have a high fraud rates. The app will ask you for a legal form of identification.
Usually, the legal form of identification will include one or two of the following below:
- Driver’s License, Green or Passport.
- Your legal name
- Your mailing and physical address
- Bank or debit card information
- Social security number
All the above is used to verify your identity on check cashing apps. This is especially, when you are trying to cash a check online without a bank account. Yes, some apps like CashApp lets you deposit a check without a bank account. If you have a bank account, then the apps will allow seamless transfer of your check amount to your bank account or debit card.
3. Endorse Your Check, Snap A Picture Of Your Check and Upload
The next step is to use the app’s cash a check feature to take a picture of your check and upload. Usually, this is capture of the front and back of the check. Most of the instant online check cashing services ask for details of the check you are trying to deposit.
By details here, I refer to the check amount.
Be sure the amount on the check is the same as what you enter, so you will not have delay in fund release. Additionally, endorse the check before you capture the images. To endorse a check, just sign the back of the check.
4. Choose How You Want Your Money
After capturing the images of the check, you may be asked to choose when and how you want the money. You can either select instant fund release, or have the fund available in a few days. Some apps will charge you a small fee for instant deposit, while others do not charge instant check cashing fees.
Furthermore, you can select whether you want the check fund to be released to your debit card or your bank account. Apps like Chime and CashApp have their own debit cards, which give you access to your funds on both platforms. You can read about these cards below:
Once you select how you want your money, you are required to confirm information entered before submission. If everything is correct, go ahead and submit. Your fund will be available based on your preference.
Top Security Concerns With Check Cashing Mobile Apps
On January 2025, the Consumer Financial Protection Bureau ordered CashApp to pay $120 million in redress and $55 million in penalty for transaction frauds. The reason being CashApp was not doing its due diligence in tackling fraud reports on its app. As a result, some of its consumers were harmed by transaction frauds.
This is a clear example of a top security concern with check cashing apps. Although known for its bank-level encryption, a check cashing mobile app may experience these kinds of issues. This is exactly why there is no instant check cashing app with no verification process. You need a legal verification process to perform a check transaction.
Here are other risks which may happen.
- Intercept by hackers on a public wifi.
- Mobile deposit frauds. As obvious in the case of Cashapp not following up on some cases of reported frauds on its app.
- Social engineering by a copy cat trying to get back to you for a recent check-cashing online.
- Password leaks.
On the whole, these are risks faced by all devices connected to the Internet. The problems often are not from the apps’ absence of security, but a result of a phish, password leak or generalized data transfer hack. Instant check cashing services are reliable. I have been using them for years without issues, however there are always the above risks.
Best Secure Check Cashing Apps
Although there are fraud risks with instant check deposit, there are secure check cashing apps. You are probably familiar with some. Here is a summary of the notable ones I use to cash checks instantly.
1. CashApp
CashApp is very popular amongst young adults. It is one of the easy apps with mobile check deposit. The app is easy to download and does not require a lot of information. Its check cashing service is seamless.
2. Venmo
Venmo will charge you a minimum of $5 per check. I will not use it, unless it is for big checks. You can read Does Venmo Cash Checks Instantly? for more information about its check cashing policies.
3. Chime
Chime is one of the free check cashing apps. It is a financial technology, which offers other banking services. I wrote How To Deposit A Check On Chime App, where I explained everything you need to know about using Chime to cash checks.
4. PayPal
PayPal is safe to use. It has been around for years. Therefore, it has a reliable check cashing service. I elaborate more on its policies on cashing a check instantly with PayPal.
5. Current
Current ranks up there with other check cashing mobile apps, because you can get an early paycheck deposit with them. If you are trying to instantly cash a check online on Current, it may take three to four business days. I talked about this on How To Mobile Deposit A Check On Current.
Benefits Of Mobile Check Cashing
Despite the risks involved with mobile check cashing services, they are one of the convenient ways of cashing a check. So, what are the benefits of mobile check deposit?
Here is why I think the pros outweighs the cons of mobile check cashing services:
- Secure: Despite the risks of a breech, it is actually a secure way of depositing a check. This is because each app uses a bank-level encryption. The chances of it getting hacked is the same as any other secure financial server on the internet.
- Fast Credit: Each check cashing mobile app offers you the option of a fast credit. You either get fund availability immediately or a few days after deposit.
- Saves You A Trip to the Bank.
- Access Anywhere In the Country: While a bank may request you to be local to be able to do a check deposit, checking apps do not. As long as you are connected to the internet, you can do instant check cashing online.
The above is all you need to know about the pros of mobile check cashing. It is what I use nowadays, because I do not have the time to drive to a bank. These apps are designed with young working class adults in mind.
Alternatives To Checking Cashing Mobile Apps
There are places you can check a check without a fee. This is especially, when you want to avoid the risk on check cashing app scams. You can cash your check from the issuing bank. All you need is a driver’s license to verify identity.
Additionally, you can cash a check in some gas stations. Kmart is known to cash check values of up to $2000. This is as long as the check is a good check.
Moreover, you can try some check-cashing ATMs. There are ATMs out there which will do it for you. Usually, going for an In-network ATMs is the best way to do it. You will not be charged for the transactions.
If you are trying to cash the check on a Sunday, read about places to cash a check on a weekend. I listed some places open on Sundays nationwide, where you can just walk in and walk out with cash. Just be sure to call ahead first, because some of these places are picky with the kind of checks they cash.
To conclude this article, check cashing mobile apps are safe to use. This is as long as you operate within the boundaries of their policies. For a working class adult like me who gets off to work when banks are already closed, these apps are a convenience.
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