What Is Cheque Cashing?
Cheque Cashing service which permits us to obtain money from Cheque much faster as compared to the traditional cheque services which take 3 or 4 days to clear the cheque. It can be frustrating for customers who have an urgent need for money.
When you apply for cheque cashing you sign a cheque and give it to them and they will minus a little amount or some percentage of signed amount but it will be declared to you before you commit for cheque cashing. They then regain the money by paying the cheque into their account and waiting for it to clear so you don’t have to.
How Cheque Cashing Works?
If you need to clear cheque urgently, cheque cashing offers the option of paying a fee to avoid the normal three-day waiting period. This waiting period occurs because a cheque basically acts like written instructions between two financial institutions and during this time both institutions have time to make sure that payment takes place properly.
When someone brings cheques to the store and he is in urgent need of money then he will provide a cheque to them and they will provide cash by deducting a small amount without ensuring that cheque will be cleared or dishonored after 3 or 4 days. Either your cheque will be cleared or not you have to pay an amount to them. Your cheque can be dishonored because of many reasons although the common one is a lower amount in payer’s account. The applicant has to give 100 of identification proof.
How It Is Different From Payday Loans?
Cheque cashing is different from Payday Loans since you are getting your own money after deduction of little amount. Payday loans are advanced which is not currently available to you but you will get it soon within 2 weeks most probably. Payday loans are considered to be a regular loan and we need to pay interest on it just like you would with any other type of credit.
When you get your cash in your hand through cheque, your business is done as soon as you walk out the door and they also took some percentage of the amount. There is no pending amount that has to be paid back at a later date.
Why Do People Use Cheque Cashing?
There are many reasons why people choose cheque cashing services. In some cases, customers who want to make money don’t have an account with their bank credit union (or if they do, might owe money at their bank and are afraid of the fact that the amount of cheque will take hold as soon as they try to deposit it.
Sometimes the funds of cheques are so large or the customer needs those funds immediately and customers don’t have time to wait for the holding that time period. Another reason can be because you need money but the bank is closed or teller counter leave so there is no option other than cheque cashing.
Documents Required For Cheque Cashing:
- Tenancy agreement dated on last 3 months
- Any photographic Id proof(Driving License, Passport)
- A statement provided with the cheque.
If you have the above documents in your hand, cash will be handover to you in 30 minutes.
If you want to know more about Check Cashing Service in Ottawa contact us at 1-613-699-0011.