How to Cash a Cheque Without Bank Account in Canada
Close to one million Canadians (three percent) are unbanked, meaning they don’t have any relationship with mainstream financial institutions. If this is your situation, it’s essential to know how to cash a cheque without a bank account in Canada.
To open a bank account in Canada, one must have government-issued identification, a social insurance number, and a permanent address. Unfortunately, some Canadians don’t have identification documents, making access to bank accounts challenging.
Without the help of banks, accessing funds from cheque payments can be tricky. That is because most banks and credit unions don’t cash cheques for customers without an account. Therefore, such clients have to opt for other solutions that don’t require bank accounts.
If you want to cash a cheque but don’t have a bank account, do not worry. This guide explores some of the ways to cash a cheque without a bank account in Canada.
That said, let’s get started!
How to Cash a Cheque Without a Bank Account in Canada
Here are some of the alternative channels for cashing a cheque in Canada.
- Cheque-issuing banks
- Payday lending stores
- Prepaid debit cards
- Retailer stores
- Speedy Cash
- CashCo Financial
- Sign your cheque to someone you trust
Most banks and credit unions don’t cash cheques for non-customers. However, some of the banks can cash the cheques if they are written by account holders at that bank, even when the cheques are payable to non-customers.
However, the payer must have enough money in their account to cover the cheque. The payee cashing the cheque must also provide identification documents, such as a military ID or driver’s license. Also, the payee will have to pay a fee for the service.
Note that various banks charge different fees when it comes to cashing cheques. For example, TD Bank charges $7 for non-customers cashing cheques at the bank. Also, some banks impose the fees as percentages.
When a cheque-issuing bank fails to cash your cheque, you can opt for payday lenders. Many payday lenders provide cheque cashing services, and you can quickly find one in your location. However, you have to be careful since they charge high fees.
Some payday lenders impose fees equivalent to a percentage of the cheque value, while others charge flat fees plus a percentage of the cheque value.
If you want to know another way as to how to cash a cheque without a bank account, you can use a prepaid card to deposit cheques and access your cash. A prepaid card works like a checking account, and your spending depends on the amount of money loaded onto the card.
Prepaid debit cards have different cheque-cashing options. Some allow you to set up direct deposits for cheques to get loaded onto the card automatically. Other prepaid cards have apps that allow you to take a picture of your cheque to load to your card.
Unfortunately, prepaid cards tend to charge high fees for cashing cheques. The fees will even be higher when you want the money urgently.
Major retailer stores such as Walmart and other supermarket chains provide cheque-cashing services. For example, Walmart charges $4 for cheques up to $1,000 and $8 for cheques worth more than $1,000. The retail store also allows people to cash two-party personal cheques. However, it limits the cheques to $200 and a fee of $6.
The good thing about Walmart is that its system is simple. The fees are also reasonable for any cheque amount and better than cheque-cashers who charge a percentage plus an additional fee.
Another popular way to cash your cheque is through Speedy Cash, a payday loan chain established in 20 different locations across British Columbia, Alberta, Saskatchewan, and Nova Scotia. The company offers quick loans to qualified customers.
Once you apply for a loan online, you will receive the funds within 24 hours after approval. But if you live near any of the branches, you can walk in and get your cash in hand. The good news is that they also provide cheque cashing services to Canadians.
You can also cash your cheque in Canada through CashCo Financial, with more than 60 locations in four provinces. They include Alberta, British Columbia, Ontario, and Saskatchewan. It’s different from others as it charges no fee for cheque-cashing.
This company uses a marketing approach that suits people who don’t want to digitize their finances. It focuses on loan options and banking services, allowing customers to cash their cheques at no cost.
Sign Your Cheque to Others You Trust
Another reliable way to cash your cheque when you don’t have a bank account is by signing the cheque over to another person you trust. The third-party person must have a bank account to cash the cheque.
Ensure that the person you sign over the cheque is willing to cash the cheque on your behalf. Their bank must also be ready to cash the cheque. It’s also ideal to accompany the person to their bank to answer any questions regarding the cheque.
Your trusted friend needs to have proper identification and be ready to pay the cheque-cashing fee. Your friend’s bank may also require you to provide your ID.
Depositing Your Cheque in Canada
Now that you understand how to cash a cheque without a bank account, you need to be more concerned about your cheque’s details. For example, you must ensure that all the fields on your cheque are filled out to avoid any inconvenience that might arise.
Most importantly, the cheques must bear the signature of the person writing the cheque, and it must be on the front. However, if the cheque gets written by two or more people, all the parties’ signatures must be available. That will make the cheque acceptable.
It’s also essential to review your cheque’s date before cashing it at any bank or other financial institution, as a cheque can be stale-dated or post-dated.
How to Deposit a Stale-Dated Cheque
If a cheque stays uncashed for more than six months, it becomes stale-dated, except when certified. In other words, it’s old but not necessarily invalid. Some banks and financial institutions will still allow you to cash such cheques.
Government of Canada cheques, bank drafts, and money orders don’t stale-date. However, the provincial government cheques are more similar to regular cheques and can become stale after six months. But not all institutions will cash stale-dated cheques.
How to Deposit a Post-Dated Cheque
A post-dated cheque has a future date, meaning the recipient must wait for it to mature before cashing it. When you deposit the cheque before its due date without knowing, you can ask the payer to contact their financial institution to backdate the cheque.
Cashing a post-dated cheque can be quite challenging, especially with banks. They will place a hold on your money and wait for the cheque to clear.
If you don’t have a bank account, cashing a cheque can be challenging. In that case, you have to look for alternative means. The good news is that you now know how to cash a cheque without a bank account in Canada. So, go for what will work best for you.