You can cash a cheque at the bank that issued it, at a cheque-cashing service, or sometimes at the retailer who wrote it

The bank that issued the cheque — the one printed in the bottom left corner — will cash it for you even if you don't have an account there. You'll need to show a photo ID, and the teller will verify the cheque is legitimate. This is free at most banks, though some charge a small fee if you're not a customer. The cheque must be signed by the person who wrote it, and it must not be post-dated (written for a future date).

If the issuing bank is inconvenient or closed, a cheque-cashing service will convert it to cash on the spot. These are storefront businesses — often located in strip malls or near transit — that specialise in cashing cheques for people without accounts. They charge a percentage of the cheque amount, typically 1 to 5 percent depending on the cheque size and the service's location. A $500 cheque might cost $10 to $25 to cash. Some retailers like grocery stores or pharmacies also cash cheques for customers, usually for free or a flat fee of a few dollars.

Key Takeaways

  • The bank that issued the cheque will cash it for free or a small fee, and this is the cheapest option if you can reach that bank.
  • Cheque-cashing services charge a percentage fee (usually 1 to 5 percent) but are open longer hours and don't require you to travel to the issuing bank.
  • You must have a photo ID and the cheque must be signed and not post-dated, regardless of where you cash it.
  • Some retailers cash cheques for customers at no cost or a flat fee, so ask before paying a percentage to a cheque-cashing service.

Cashing at the issuing bank costs nothing or very little

The bank whose name appears at the bottom left of the cheque is responsible for honouring it. Walk into any branch of that bank with your photo ID and the signed cheque. The teller will verify the account has sufficient funds and process the cash when ready. Most banks do this for free, even if you have no account with them. Some charge a small fee — $5 to $10 — if you're not a customer, but this is less common and usually only happens at large institutions.

The catch is timing. Banks have limited hours, usually closing by 5 or 6 p.m. on weekdays and closing entirely on weekends and holidays. If you need cash outside those hours, or if the issuing bank is far away, this option may not work for you.

Cheque-cashing services are faster but charge a percentage

A cheque-cashing service is a private business that cashes cheques for a fee. You'll find them in most cities and towns, often in strip malls, near bus stations, or in neighbourhoods with high foot traffic. They're open longer than banks — many stay open until 8 or 9 p.m., and some operate on weekends. You bring your photo ID and the signed cheque, and they give you cash minus their fee.

The fee is usually a percentage of the cheque amount. A small cheque of $100 might cost $2 to $5 to cash, while a $1,000 cheque might cost $10 to $50. The exact percentage varies by location and the cheque-cashing company's policies. Some charge a flat fee instead — say $3 per cheque — which is better if your cheque is large. Ask the fee upfront before handing over the cheque. If the fee seems high, you can walk out and try another service or go to the issuing bank instead.

Cheque-cashing services also verify that the cheque is real and that the account has funds, so there's a small delay — usually a few minutes to an hour — while they confirm the cheque won't bounce. If it does bounce after they've given you cash, they'll pursue you for repayment, so make sure the cheque is legitimate before you hand it over.

Some retailers will cash cheques for free or a small flat fee

Many grocery stores, pharmacies, and department stores cash cheques for customers as a service. Walmart, Costco, and most large supermarket chains offer this. The fee is usually nothing or a flat $2 to $3, which is much cheaper than a cheque-cashing service's percentage. The catch is that they may only cash cheques up to a certain amount — often $500 to $2,000 — and they may only cash cheques written by the store itself or by certain businesses they trust.

If you're cashing a cheque from your employer or a government agency, a retailer is worth trying first. Ask at the customer service desk. If they can't cash it, they'll tell you when ready, and you can move on to the issuing bank or a cheque-cashing service. This option works best if you're already shopping there anyway.

What you need to bring and what will disqualify the cheque

You must have a valid photo ID — a driver's license, passport, provincial ID card, or similar document. The teller or cashier will check that your name matches the name on the cheque or that you're authorized to cash it (for example, if it's made out to your business). Without ID, no one will cash it.

The cheque must be signed by the person or business that wrote it. If it's blank or unsigned, it's worthless. The cheque must not be post-dated — that is, it cannot have a future date written on it. A cheque dated three months from now cannot be cashed today, even if the account has money. The cheque must also not be stale-dated. In most places, a cheque is only valid for six months from the date written on it. If the cheque is older than six months, banks and cheque-cashing services will refuse it.

If the cheque is damaged — torn, water-damaged, or illegible — some places will still cash it if they can read the key information (the amount, the date, the signature, and the account number). Others will refuse. If you're unsure, ask before you hand it over.

What to do if the cheque bounces after you cash it

If the account that issued the cheque doesn't have enough money, the cheque bounces. If you cashed it at the issuing bank, the bank will contact you and ask you to return the cash. If you cashed it at a cheque-cashing service or retailer, they will pursue you for repayment — they may call you, send you a bill, or take legal action if you don't pay.

You are not responsible for a bounced cheque if you cashed it in good faith and had no reason to suspect it would fail. However, the person or business who gave you the cheque is responsible for making it good. If someone deliberately gave you a bad cheque, that's fraud, and you can report it to police. In most cases, though, it's a mistake or a miscommunication about when funds would be available.

If a cheque bounces, contact the person who wrote it and ask them to issue a new one or pay you in another way. If they refuse, you can take them to small claims court to recover the amount. Keep the bounced cheque as proof.

Frequently Asked Questions

Can I cash a cheque made out to someone else?

Not directly. A cheque is a legal instruction to pay the named person. If the cheque is made out to someone else, that person must endorse it (sign the back) and then you can cash it together, or they can cash it themselves and give you the money. Some banks and cheque-cashing services will not accept a third-party cheque even with an endorsement, so call ahead if you're planning to do this.

What if the cheque is torn or damaged?

Banks will usually cash a damaged cheque if they can read the amount, date, signature, and account number. Cheque-cashing services are stricter and may refuse. Your best option is to contact the person who wrote the cheque and ask for a replacement. If that's not possible, try the issuing bank first — they have the most authority to verify the cheque is real.

How long does it take to get the cash?

At a bank or retailer, you get cash when ready — within a few minutes. At a cheque-cashing service, there's usually a short delay of 5 to 30 minutes while they verify the cheque is legitimate. If they need to contact the bank to confirm funds, it might take an hour. Call ahead if you're in a hurry.

Is it safe to use a cheque-cashing service?

Yes, cheque-cashing services are regulated businesses and are safe to use. They verify cheques before cashing them and keep records of transactions. The main risk is the fee — make sure you understand the cost before you hand over the cheque. Avoid services that ask for personal information beyond your ID or that seem disorganized or unwelcoming.

What if I don't have a photo ID?

You cannot cash a cheque without a photo ID. If you don't have one, you'll need to get one before you can cash the cheque. A provincial ID card, passport, or driver's license all work. If you're in a situation where you can't get ID quickly, ask the person who wrote the cheque if they can cash it themselves and give you the money, or if they can write you a different form of payment.