You may have heard talk about check cashing services, but if you’ve never been to one, you might not know all the benefits they offer.
No matter your financial situation, these services are great options for individuals – and they’re also popular businesses to open.
Here, we’re breaking down the top ten things you need to know about check cashing services and what they offer.
1. There Are Both Franchise and Independently-Owned Check Cashing Services
You may feel more comfortable doing business with a franchise check cashing service, but often, independent ones are just as qualified – and sometimes have shorter lines!
If you’re patronizing a franchise, know that they have the benefit of nationwide advertising, professional, corporate-supervised training, and perhaps better, more up-to-date software.
Local and independent check cashing services are, of course, still subject to the law, but they don’t have to pay any initiating fees to the franchise, and they don’t follow any corporate regulations.
2. They’re Available For People Without Checking Bank Accounts
If you don’t have a checking account, you’re not alone. Over 10 million Americans don’t have a bank account. Check cashing services allow you to get your money, and it’s one of the most affordable ways to cash your check.
However, in order to get your money, you’ll still need to pay a fee to the service, usually either a flat fee or just a percentage of your check. Make sure you’ve done your research to find the best values.
3. Not Every Type Of Check Can Be Cashed
Even if the service is a franchise, they still may not be able to cash all kinds of checks. It often depends on the kind of risk the service is willing, or can afford, to take.
For example, government checks aren’t risky to cash, but often, personal checks are. Sometimes, the service may even call the business that issued the check to confirm their identity and existence. Don’t be alarmed – it’s just procedure.
Before you get in your car and drive over, check with the service to make sure they can handle the type of check you plan on cashing.
4. Checks Can Still Be Returned
Just like at a bank, there are all sorts of check cashing issues that can happen when you do business with a check cashing service.
The checks can come back to the beneficiary because they’ve been written on closed accounts, don’t contain enough funds, or if there are clear signs of fraud.
Each service may deal with returned checks in a different way, so if you’re unsure about the financial stability of the person or entity who wrote you a check, ask about their policies beforehand.
5. They Offer A Variety Of Services
Sure, check-cashing businesses are a great way to get your cash, but did you know they can also help you with…
- Establishing P.O. Boxes
- Getting Stamps
- EBT services
- ATM services
- Currency Exchange
- Money Orders
- Bill Paying
- Transfers of Funds
- Smaller, payday loans
What’s not to love about that?
6. Many of Them Use Apps
Apps aren’t just popular for smartphones. Now, even your check cashing business can use them to keep up to date with current technology and update your programs on their own.
Plus, it’s a great way to learn about new ideas on how to generate more revenue.
This also means that, if you’re a customer, you should feel secure that you’re working with a service that’s with the times – and that they’re doing everything they can to get you your money when you need it.
7. They’re Open Later Than Banks
Another reason why these services are so popular? Because they have better hours than most banks.
Thanks to these places, you won’t have to sprint over to the bank and spend all of your lunch hour in line.
They’re also open past 5:00PM, so you won’t have to leave work early just to get your money.
Plus, you don’t need to swipe a debit card in the door to gain entry – just walk in!
8. You’ll Need To Present Identification
It’s not just as simple as handing over your check and walking out with a wad of cash.
You’ll need to provide photo ID, like your Driver’s License, a military ID, and even your passport. Always make sure that your document is signed and that it hasn’t expired!
9. Security Is Super Tight
If you see guards and police cars outside of a check cashing service, this should make you feel better. It’s a given that they’re a high target for robbers, and as result, many are making getting cash a little bit more of a process.
To prevent having too much cash on hand, some services are dispensing the check amounts on a pre-loaded debit card, which you’ll then be able to withdraw funds from.
Expect to see bulletproof glass and security cameras. If you’re thinking of opening your own service, make sure you run a serious background check on employees.
10. They Have Special Licensing And Registration Features
Whether you’re thinking of opening your own check cashing services businesses, or if you just want to make sure the one you’re using is safe and following the law, here’s what you need to know.
Though specific registration and licensing procedures depend on the state laws, there are federal procedures in place as well.
Under federal law a money service business (also called an MSB) is defined as a business that takes a fee to cash out checks over the amount of $1,000 to several people over the course of a single day.
MSB services also include currency exchanges, money orders, and transmission.
These businesses are highly regulated and have to use approved, specific bookkeeping records. Your check cashing services will also comply with the Bank Secrecy Act, and the Patriot Act – meaning they have to report any suspicious activity.
You’re Clear On What To Look For In Check Cashing Services
Thanks to this article, check cashing services are no longer a mystery.
Looking to learn even more about what they offer, or get additional questions answered?
Feel free to check out our website, and to contact us with any questions.