This describes Kansas City check cashing services for payroll and why people are leaving banks to cash their checks.
There are more than 11,000 smaller neighborhood financial services centers in the United States that cash over 180 million checks every year. Consumers cash more than $55 billion in checks per year and up to 90% of the Kansas City checks cashed are payroll checks. There are many reasons consumers choose check cashing services over a bank account, even when they qualify for a traditional checking account.
Convenience is King
Just as consumers are willing to pay higher prices at convenience stores and for delivery services, so too are customers willing to pay a fee for the convenience of a financial services center near their home that stays open 24 hours a day.
Avoid Costly Bank Fees
While critics are quick to point out that check cashing Kansas City customers pay a fee to cash a check that traditional banks do not charge, this does not mean that checking account services are without their own set of fees. Many customers have been burned by traditional banks charging monthly account fees, per-check charges, bounced check fees, overdraft fees, and more — all of which can make banking services unaffordable. Customers who live paycheck-to-paycheck in particular are harmed by these banking practices as a single bounced check or overdraft can lead to a negative balance and further fees. Many simply find that a bank account costs too much for their needs.
Reasonable Fees to Cash a Check
It’s true that financial services stores charge a fee to cash a check, but this fee is more reasonable than many assume. The standard fee to cash a check is between 2% and 3% and many states limit the fees that may be charged. Payday loans, on the other hand, have a fee that is 10-30% of the amount borrowed. These fees may sound high, but they don’t compare to the 3-5% upfront fee of a credit card cash advance that also comes with an interest rate that may be as high as 29.99%.
Easier Service and Comfort
Another commonly overlooked reason to use a neighborhood check cashing Kansas City store is greater comfort for the customer. Some people find banks intimidating, especially if they do not speak English as their native language or they prefer to do business with people who look and speak like they do. Retail check cashing locations are often preferred by people more familiar with a less formal banking system, especially if they have been refused loans or treated poorly at a financial institution.
While financial services centers aren’t the preferred option for many consumers, others find this arrangement perfectly fits their needs with upfront, affordable, and predictable fees that replace the uncertainty and high cost a checking account can pose. Waldo Financial is a leading provider of check cashing services and payday loans in Kansas City, serving customers with reasonable fees and friendly service.
This described Kansas City check cashing services for payroll and why people are leaving banks to cash their checks. When you need your payroll check cashed, see Waldo Financial at 8437 Wornall Road, Kansas City, MO, 64114. Or give us a call at (816) 333-6800.