Does Walmart Cash Third Party Checks In 2026? Here‘s the Full Scoop
Hey there! If you‘ve got a third party check in hand and you‘re wondering if Walmart will cash it for you in 2022, I‘ve got the full low-down right here.
The short answer is: Unfortunately, Walmart no longer cashes third party or two-party checks at any location. I know, bummer.
But don‘t worry, you still have plenty of options to get your hands on those funds. I‘ll explain why Walmart changed their policy, where you can cash third party checks instead, tips to save you fees, and everything else you need to know. Let‘s get started!
Here‘s Why Walmart Won‘t Cash Third Party Checks Anymore
Walmart made the call to stop accepting third party checks back in 2020. This policy applies to all Walmart and Sam‘s Club locations nationwide.
You‘re probably wondering why they decided to stop providing this convenient service. There were a few key reasons behind the change:
1. Skyrocketing check fraud
Check fraud has absolutely exploded over the past decade. Financial institutions lost $15.8 billion dollars to check fraud in 2018 alone, up more than 75% since 2015 according to the Federal Reserve.
Third party checks are extremely susceptible to fraud since they change hands multiple times between strangers. This leaves retailers like Walmart at huge risk of accepting fake, forged or bad checks and losing big money.
2. Difficulty verifying third party checks
With old fashioned first party checks, Walmart can easily verify the identity of the account holder and confirm they have enough funds by running the check through electronic verification systems.
But third party checks add extra steps that complicate the process. It‘s much harder for Walmart to verify third parties are who they claim to be or determine if the original check was legitimate.
3. Slowed down lines and extra processing
From a purely logistical standpoint, third party checks just create headaches for Walmart. They slow down lines in stores, create accounting issues, and add extra processing work compared to routine first party checks.
As a major corporation obsessed with efficiency, Walmart decided the extra effort wasn‘t worth the hassle.
4. Stricter banking regulations
In recent years, retail check cashing has come under tighter scrutiny from banking regulators concerned about money laundering and fraud.
Rules like Know Your Customer (KYC) and Anti-Money Laundering (AML) laws make it riskier and more cumbersome for retailers to accept third party checks. Walmart decided playing by the rules was easier without the regulatory complexity of two-party checks.
By drawing a hard line and only cashing first party checks issued directly to the person cashing it, Walmart reduces their fraud exposure, speeds up check out lines, and avoids regulatory hassles. Makes sense from their perspective!
Don‘t Fret – You‘ve Got Plenty of Places To Cash Third Party Checks
Now that we know Walmart is a no-go, where can you actually cash third party checks in 2022? Here are the best options:
Banks
Your absolute best bet is to head to the bank where the third party check was issued from. Since that bank controls the account tied to the check, they have the most ability to verify its legitimacy and will likely cash it with proper ID.
But even if it‘s not the issuing bank, most major banks will cash third party checks for non-customers. They have the tools to validate checks while managing the risk. Here are some top banks to try:
- Bank of America
- Wells Fargo
- Chase
- Citibank
- BB&T
- HSBC
- M&T Bank
- SunTrust
Expect to pay a fee between $5-$15 for the convenience if you don‘t have an account.
Credit Unions
Since credit unions are nonprofits focused on serving members, they are often more flexible than banks in cashing third party checks. Fees are usually lower too.
Great options include Navy Federal Credit Union, SECU MD, State Employees‘ Credit Union, and others. Credit unions you‘re a member of are ideal.
Check Cashing Stores
Stores that specialize in financial services like check cashing, money orders, and money transfers will cash most third party checks. They fill a need that banks won‘t for people without accounts.
Leading national chains include ACE Cash Express, Check ‘n Go, CheckSmart, Advance America, Speedy Cash, CashCo, and Check Cashing USA.
The catch is these stores charge high fees, often 2-5% of the check value. Weigh the costs versus convenience if banks reject you.
Supermarkets
Major supermarkets like Albertsons, Kroger, Publix, and some Safeway stores will cash checks at their customer service desks for a small fee. Their third party check rules vary, so call ahead.
Similarly, retailers like Kmart, Costco, and Walgreens used to cash checks at certain locations but have mostly phased it out, though a few stores still offer it regionally. Doesn‘t hurt to ask!
United States Postal Service (USPS)
Select US post offices can cash money orders and treasury checks, and will sometimes process personal checks for postal customers with valid ID.
Call or visit local post offices to see if they currently handle two-party personal checks. Policies vary by location.
Pro Tips: How To Cash Third Party Checks With Ease
Cashing third party checks isn‘t always a breeze, but going in prepared can help ensure success. Here are my best tips:
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Contact the issuing bank first – Your best odds come from cashing a check at the bank it‘s drawn from. Call them upfront to see if they‘ll cash it for a non-customer. If so, go straight to a branch with ID ready.
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Have both parties present – The original payee and third party recipient should be present together with government-issued IDs to prove identities.
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Be ready for fees – Accept that you‘ll pay a convenience fee, typically 1-5% of the check value. Banks consider third party checks risky, so they charge accordingly.
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Ask about hold times – Many banks place multi-day holds on cashed third party checks before funds are available to allow time for potential fraud checks.
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Get a receipt – When a teller processes your check, request a receipt showing the check was cashed for your records. This will protect you if anything goes wrong down the line.
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Try during business hours – Your odds improve by going to banks early in the day before they get busy. This gives them more time for verifying funds availability and getting approvals.
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Consider opening an account – Opening a checking account at the bank makes it much easier to cash third party checks there and costs less in fees. Could be worthwhile long-term.
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Have backup options – Case the joint ahead of time to identify 2-3 places willing to cash your check so you have backups handy if needed.
With the right game plan, you can overcome the hurdles of third party checks. Patience and preparedness are key!
The Cost of Cashing: Fees From Banks and Stores
To give you a better idea of the typical fees to expect, here‘s an overview of what major banks and check cashing providers usually charge to process third party checks.
Banks
| Bank | Fee |
|---|---|
| Bank of America | $5 for account holders, up to $20 for non-customers |
| Wells Fargo | $7.50 for account holders, up to $15 for non-customers |
| Chase | $5-10 for account holders, up to $25 for non-customers |
| Citibank | $10 for account holders, up to $30 for non-customers |
| U.S. Bank | $5 for account holders, up to $20 for non-customers |
Check Cashing Stores
| Store | Fee |
|---|---|
| ACE Cash Express | 2% of check value |
| Check ‘n Go | $3.99 per $100 |
| MoneyGram | 5% of check value |
| CheckSmart | 4% of check value |
| Advance America | Up to 5% based on state laws |
As you can see, fees are generally lowest at banks where you hold an account. Non-customers get stuck paying higher convenience fees. Check cashing stores mark up fees the most since they cater to the unbanked.
To save money, try taking your third party check to a bank where you‘re a customer first before exploring more expensive alternatives.
Know The Rules: Regulations for Cashing Third Party Checks
Banks and financial institutions have to follow certain regulations and requirements when cashing third party checks which protect them from fraud and abuse. Here are some key ones to be aware of:
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ID verification – Institutions will require one or more forms of valid, current government-issued photo ID to verify identities before processing checks.
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Proof of address – You may need to provide a secondary document with your physical address like a utility bill to confirm your identity.
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Fingerprinting – Some states permit and even require collecting fingerprints when cashing checks over certain dollar amounts due to fraud concerns.
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Photo/video recording – Banks may photograph, photocopy or video record your ID and transaction as further evidence.
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Hold periods – Funds from cashed checks may be held for multiple days to allow for verification and prevent frauds from quickly withdrawing cash.
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Check limits – Many banks enforce maximum limits on third party check amounts they will cash, often between $500-$5000. Larger checks get rejected.
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KYC/AML rules – Know Your Customer and Anti-Money Laundering regulations require financial institutions to vet customers‘ identities and legal source of funds. This makes cashing third party checks more stringent.
While these precautions can be annoying, they ultimately protect banks and consumers alike from potential check frauds. Follow the rules and you shouldn‘t have issues.
Common Questions and Concerns
I know cashing third party checks can be confusing, so let me wrap up by answering some of the most frequently asked questions:
Can I cash a third party check made out to multiple people?
If the check is made out to multiple payees, all parties will likely need to be present with IDs and endorse the check before a bank will accept it. For "and" checks, all payees must sign. For "or" checks, one signature may suffice.
What if I don‘t have a photo ID?
Lacking proper ID makes cashing third party checks extremely difficult since banks can‘t confirm your identity. Your only options are asking the original payer to reissue the check in your name or finding a check cashing store willing to take risks. Not recommended.
What happens if a cashed third party check bounces?
If you cash a third party check that later bounces due to insufficient funds or fraud, the financial institution will come back to you directly to recoup their money. This is why third party checks involve substantial risk of losing funds. Be very careful.
Can I cash a stale dated or expired check?
Financial institutions are under no obligation to accept stale dated checks more than 6 months old. However, some may accept checks up to 180 days old with manager approval. Just know that the older the check, the higher the chance it gets denied.
Are there any guaranteed ways to cash a third party check?
No method is foolproof since banks can refuse service at their discretion. But contacting the issuing bank first provides your best odds, especially if you‘re willing to open an account there. Persistence and some account fees can overcome most roadblocks.
The Takeaway: Be Strategic Cashing Third Party Checks
While Walmart no longer provides the service, cashing third party checks is still possible with a bit of effort. Now that you know where you can cash them, fees to expect, and ways to improve success, you can strategically get your third party check cashed.
Banks you have accounts with and the issuing bank should be your first stop. Verify necessary IDs, proof, and funds ahead of time. Be ready for extra fees and fraud protections that may slow the process. With the right homework and expectations, you can turn that questionable third party check into cold hard cash or usable funds.
And if one place turns you down, don‘t fret – move on to the next and persist. Where there‘s a will, there‘s usually a bank willing to take on the risk for some fees. With this advice, you can rest easy knowing your check cashing options are covered. Let me know if you have any other questions!