This describes the three most common reasons Kansas City residents turn to neighborhood check cashing services instead of banks.
There are more than 11,000 neighborhood financial services stores throughout the United States that cash over $180 million in checks every year. While traditional banking services can make more sense for many Americans, tens of thousands of consumers turn to check cashing services instead for a variety of reasons.
The following are the three of the most common reasons Kansas City residents turn to their neighborhood financial services center.
#1. Avoid the high costs of a bank
It’s estimated that 17 million people in the United States are “unbanked” while 45 million are “underbanked.” Banks are often an expensive solution for these consumers who may face bounced check fees, overdraft fees, insufficient balance fees, and monthly fees for failing to maintain a minimum balance. Banks only deposit funds 5 days per week but make withdrawals seven days a week. Bank checking account fees are also anything but transparent.
A check cashing Kansas City provider, on the other hand, offers a service with a clear, upfront, and affordable fee. Consumers using cash don’t have to worry about hidden costs, how much is in their checking account, and recurring charges.
#2. Fees to cash a check are reasonable
While some criticize the industry for charging a fee for what banks do for free, it’s important to remember that banks make up for this by charging for fees on many other services, including simply having a checking account. Cashing a check at a financial services center is generally very affordable with an upfront fee of 2-3% of the check amount. This means cashing a $1,000 check would cost $20 to $30.
Compare this to the upfront fee of 3-5% for a credit card cash advance and an interest rate of 20-29.99% and it’s easy to see the value of this service.
#3. More personal service
Many consumers who use a check cashing Kansas City storefront do so for the personal service. Banks can be very intimidating to some people, especially those who do not speak English fluently or have been turned down for banking services in the past. A neighborhood financial services store is often operating and staffed by people from the area who may speak the consumer’s language for a more comfortable transaction.
Financial services centers offer a valuable service to consumers who are underbanked or unbanked with predictable, low fees to cash a check. Waldo Financial is a leading provider of check cashing and payday loans with affordable solutions for Kansas City residents.
In summary, these are the three most common reasons why Kansas City residents turn to neighborhood check cashing services instead of banks.