Kmart to cash checks

Kmart to cash checks

1386
0
SHARE

Kmart to cash checks-Kmart, which has been considered a struggling retailer, has announced it will be rolling out check cashing services in its stores around the country.

The service will be focused toward members of the Shop Your Way rewards program. Fees for the check cashing services will vary, ranging from no charge in some states to up to $3 per check in others. Customers using the service can cash government checks of up to $2,000 and payroll checks up to $1,500. Kmart is also stepping out on the ledge, cashing personal checks that are capped at $400, because of the heightened risk of check bouncing.

Sponsored Links

The check cashing service by the retailer had a test run last October. The company had run the test of putting the money on prepaid debit cards, but customers preferred of turning checks into cash rather than cards. The trial run offered free check cashing if the customers would have the amount of the check loaded onto a Halogen prepaid debit card.

Wal-Mart had already been offering a check cashing service in its stores. Discount retailers rely on the low income shoppers for their purchases. Many of those are unbanked or under banked and need checks cashed before shopping. Offering check cashing services gets that particular group of customers in stores, then cashes the check and hands them the funds to spend while there. By limiting check cashing to loyalty program members, the retailer is increasing the chances of the customers being loyal Kmart shoppers. The retailer is also probably in hopes that it will draw more customers to the chain for purchases because of the check cashing convenience.

According to the Federal Deposit Insurance Corporation (FDIC), more than one in four households (28.3 percent) are either unbanked or under banked, conducting some or all of their financial transactions outside of the mainstream banking system. That means about 8.2 percent, or 10 million people in the U.S., do not have a bank account at all.

According to Kmart, Shop Your Way members account for 65 to 70 percent of all purchases made in Kmart stores. Kmart offers online and in store layaways and both options will be free, the retail chain has announced.

Other Retailers make Announcements

Sears has announced they will be offering a lease to own program for customers who cannot finance large purchases due to credit issues. Wal-Mart also has said it will be offering free Christmas layaways this year.

More News

Yesterday, Samsung officially revealed the launch date of the much anticipated Samsung Galaxy S7 lineup. The company officially announced via a teaser video that the Galaxy Unpacked event of 2016 will be held on February 21. This means that...
Mortgage rates fell every week for the last month due to continued market volatility, but remain relatively flat on February 1, 2016. Rates were unchanged last week when the Federal Reserve announced its decision to leave its benchmark rate...
Home prices rose in 20 cities at a faster pace at the end of 2015, continuing a hot growth streak that some economists warn may hurt affordability. The Standard & Poor's/Case-Shiller 20-city home price index increased 5.8% in November from...
While mortgage rates remain fairly flat as the week begins, they have been declining for more than one month despite the Federal Reserve raising interest rates in December. Continued market volatility and rising home prices are keeping mortgage rates...
The frenzied demand for lower mortgage rates has definitely slowed after reaching a peak in 2012. Mortgage rates have remained consistently below 4% for some time, and it would be easy to assume that almost everyone who could have...