This article describes Kansas City check cashing services. Learn why most people prefer check cashing services over traditional banking.
A growing number of consumers in the United States are “unbanked” or “underbanked” for a variety of reasons. It’s estimated that one-third of the U.S. population is underbanked with no checking account, although it’s usually not for lack of qualifying but a preference for more personal or less expensive financial services.
Why do consumers in Kansas City prefer check cashing services over a traditional bank? Here are some of the biggest reasons behind this trend.
#1. Bank services are expensive
A checking account can be very expensive, especially for people who cannot maintain a minimum balance, live paycheck-to-paycheck, or have irregular income. While banks do not charge a fee to cash a check, they do charge hefty fees for almost everything else.
Average banking fees in the U.S. include:
$12 monthly maintenance fee
$4.52 ATM surcharge
$35 overdraft fee
$15 minimum balance requirement fee per month
Cashing a check at a Kansas City Check Cashing Service Center, on the other hand, has a transparent, upfront fee of 2-3%, or $20 to $30 per $1,000 cashed. Consumers do not need to track a checking account balance or worry about fees for their balance dropping below a threshold or recurring charges incurring an overdraft fee.
#2. Personalized customer service
Many people who use neighborhood check cashing Kansas City stores do so because they find banks intimidating, cold, or unfriendly. Some customers of financial services stores do not speak English fluently and prefer working with someone who looks and speaks as they do, while others have been treated poorly by banks in the past or turned down for services. Kansas City neighborhood check cashing storefronts offer a more personalized and comfortable transaction for many people.
#3. Cost to cash a check is reasonable with no hidden costs
Critics argue that charging a fee to cash a check is taking advantage of consumers, but the fact is banks charge much higher fees for a range of services they provide, including monthly fees just to keep a checking account open. When consumers walk into a check cashing Kansas City storefront, they know exactly what to expect: a fee of 2-3% of the check amount. There are no hidden costs, no maintenance fees, and no “gotchas.” This can make it far easier for a consumer to manage their finances and the fee is far more affordable than alternatives like a checking account or a credit card cash advance for thousands of consumers.
While financial services stores aren’t the right choice for everyone, they fill an important need for millions of Americans who do not use banks for a myriad of reasons. Waldo Financial offers payday loans and check cashing service to Kansas City residents with competitive fees and friendly service.