Wal-Mart Will Cash Tax Rebate Checks

Wal-Mart Stores Inc. said it will cash customers’ income tax rebate checks at no charge in an effort to grab its share of the $38-billion payout to U.S. taxpayers.

Starting July 23, the government will mail 91 million tax rebate checks in amounts of $300 to $600, depending on a taxpayer’s filing status.

Wal-Mart will cash the checks at its Wal-Mart and Sam’s Club stores in hopes that customers spend some of the money on its merchandise.

Wal-Mart, the world’s largest retailer, said it has arranged to have enough cash on hand at its registers to process the checks.

Bentonville, Ark.-based Wal-Mart already allows customers to use government checks and company payroll checks to pay for purchases. Rivals Kmart Corp., Target Corp. and Sears, Roebuck & Co. do not offer check-cashing services.

The National Retail Federation, a trade group representing retailers, estimates that billions of the rebate dollars will be spent in stores.

Wal-Mart shares rose $1.35 to close at $48.85 on the New York Stock Exchange.