The USPS Is Offering Check Cashing Services at a Limited Number of Locations

The USPS is testing check cashing services at some of its locations. Find out what you need to know.

Not everyone has a checking account. Millions of Americans are unbanked or underbanked for a variety of reasons. The good news is even without a bank account, there are ways to get your checks cashed.

Popular retailers and grocery stores often offer a check cashing service for a set fee. But there's another place where you may soon be able to get your check cashed -- the post office. The USPS is offering check cashing services at a limited number of locations. You won't receive your funds in cash, though.

Select USPS locations will process checks up to $500

The USPS is testing out check cashing services at some of its locations. This service began in September. Customers can bring in personal or business checks up to $500 to be cashed. But they won't receive cash. Instead, they will receive a single-use gift card. At this time, this service is only available at a limited number of USPS locations.

Are you wondering where this service is available? Some retail locations in Washington D.C, Falls Church, Virginia, Baltimore, Maryland, and the Bronx, New York, now offer this check cashing service. This new service could provide an additional way for the USPS to bring revenue while making it easier for consumers without bank accounts to access their money.

It'll be interesting to see whether this initiative expands to more locations and whether the USPS will offer cash payments instead of only offering gift cards.

Where else can you cash a check without having a bank account?

You may be wondering where else you can cash a check without having a bank account. If you want to get cash instead of a gift card, these alternative options may work better for you:

• Big box retailers and grocery stores: Some big-box retailers or grocery stores offer this service for a fee. Check retailer locations in your area to see if they offer this service and compare the cost. You may be able to save a bit of money by going to a retailer that charges a lower fee for this service.
• Use payment apps: You can cash a check with some mobile payments apps. For example, PayPal and Cash App now offer this service. Be sure to compare fees and check limits. You'll need to create an account to use this service.
• Ask a friend: If you have a friend with a bank account, they can cash your check for you. All you need to do is endorse your check to your friend. Sign the back of the check like you usually would. Below your signature, write "Pay to the order of" and write your friend's full legal name. Your friend will then be able to cash the check, and they can give you the cash. You should only do this with someone you trust.

If you've been meaning to open a new bank account and are ready to do so, take a look at this list of best bank accounts. Having a bank account can offer added convenience, and it can help you keep better track of your money. If you're looking for advice on how to better manage your money, these personal finance resources may be helpful.