Do All US Banks Cash International Checks?

Cashing an international check at a U.S. bank or credit union isn't as easy as you might think. You may find more options for depositing an international check into your savings or checking account. Financial institutions vary in their policies for foreign checks and even which foreign countries they will accept checks from.

A foreign check is considered a collection item by U.S. financial institutions. In banking, a collection item is a method of payment presented to a bank that the bank cannot or will not credit to the depositor's account until after payment has been received or collected by the American bank.

According to the U.S. Office of the Comptroller, handling collection items is often subject to special rules, extending processing time and additional bank fees. This goes for Canadian checks, too.

If your bank accepts a foreign check, you will not have access to the funds until the foreign bank has made those funds available to your U.S. financial institution. This could take anywhere from a few business days to several weeks. In the meantime, your bank will charge you a processing fee for the additional time and effort.

Banks will not accept foreign checks through online banking. Transactions must be handled in person, which adds to the cost of this financial service.

You can cash a check issued in a foreign currency, but prepare to pay the going foreign exchange rate on top of applicable bank fees.

Restrictions on foreign banks and international transactions in the U.S. tightened significantly with the passing of the USA Patriot Act in 2001. The policies regarding checks issued by international banks vary among U.S. financial institutions but share common traits of wait time and extra fees.

At Wells Fargo, you cannot present a foreign check for cash. You may be able to deposit the check into your bank account, but there is a waiting time for the check to go through the collection process. Wells Fargo does not accept checks from all foreign countries.

U.S. Bank allows you to deposit an international check, but it will need to be presented for payment to the foreign bank first, and you will be charged a fee. Like most other banks, U.S. Bank's terms and conditions prohibit international check deposits through their mobile app or ATMs.

The T.D. Bank website states that some foreign checks may be available for provisional credit, but many must be sent out for collection for final payment. Waiting times and additional fees may apply for these services.

Bank of America does not accept foreign checks for mobile deposits. Check with your local branch for the policy, waiting time and applicable bank fees.

Citibank® offers a multi-currency account through Citi International, allowing people working internationally to handle multiple currencies. The minimum balance for these accounts is high. If foreign checks are a rarity, call your local branch to find out their process for making a check deposit from a foreign bank.

Whatever financial institution you hold a bank account with, instead of visiting their FAQs page, call or visit in person to learn your options.

Currency exchanges and check cashing places like Walmart's Money Center will not cash foreign checks. However, most currency exchanges, banks, credit unions and other financial institutions have other options for making deposits and receiving payments from a foreign country.

When receiving foreign payments, weighing the fees associated with different options is essential.

Instead of a foreign check, you may want to consider an international wire transfer. This can be done through your bank for a fee, but you may get a better rate via a mobile app or other service. The website monito can save you time by comparing foreign currency exchange rates and the cost of popular money transfer services such as Wise, MoneyGram, Western Union and PayPal.

Consider using your credit card if you receive or make payments regularly to a foreign country. Most cards are widely accepted; according to Experian, many don't charge foreign fees.

When sending money to a foreign country, you can use cash, a debit card or a traveler's check to purchase an international money order from any post office. Like a check, the money order is payable to a specific person, but it is easily exchangeable for cash in the receiver's home currency. Some banks and credit unions also offer international money orders.

Whichever method you use to receive or send money, it can come with very costly fees. Make sure you research the costs and know your rights. Consumerfinance.gov is an excellent resource for protecting yourself and your money.