From checks to cash: The basics of checkbox services

The idea of ​​using and issuing checks has gotten a notch higher. Now people are no longer required to go to the banks to have the check cleared, deposited or encapsulated to the person whose name carries it. A growing industry that offers check-box services is now gaining ground to help people with quick access to cash once a check is issued. The money service industry has grown, and this is one of the newest additions to the range of services one can avail.

So how does this checkout system work?

Well, it’s relatively simple. A person whose name appears on the check can go directly to one of these check-cashing providers. The company must then make the necessary verification of the identity. The person may be asked to provide at least two identification cards and / or a bank account. Upon verification, he will be asked to approve the check and the company will then deposit the amount less all deductions and processing fees directly into the bank account. Most of the check-cashing outlets also offer affiliates such as payday loans, bill payments, and cash order payments. The processing fee may vary and some checkout companies may also impose a minimum amount.

Benefits of using Check Cashing Services

• This method is advantageous for people who do not have any existing bank accounts. Since banks tend to be relatively more stringent in handing out cold cash, it would be more convenient to have to authenticate the check to a legitimate business.

• Queues in banks can be extremely time consuming. Having to spend all morning in a bank is not only impractical, but would require so much effort, especially for those working in banking.

• You can have quick access to your money even on a bank holiday. Most check-cashing companies are open seven days a week. They also usually have online portals where your questions can be answered at any time of the day.

• If there are no check-cashing companies close to your house, just go to Walmart. They offer check-in for a minimal fee. A $ 3.00 fee is deducted from checks, paychecks, money orders, and tax checks of $ 1000 or less. For larger amounts, a $ 6 fee is deducted. Note that they only include checks with a maximum amount of $ 5000. If you live far from Walmart, you may choose to check with larger retailers close to your area, such as 7-11.

• If you do not have a bank account where the money can be deposited, ask if the checkout offers prepaid card loading system. This is another option. However, this requires an activation fee of usually less than $ 10 per day. Map.

Disadvantages of using Check Cashing Services

• Fees can be quite high. For example, losing 3% of the $ 5000 check amount right away can mean losing $ 150 dollars right away.

• Pronounced checks can cause a major legal problem for the person requesting the check approval.

• That it does not have the correct identification card can also be a problem. Incorrectly spelled names and illegible breaking on the check can also be questioned by the cashier.

How do I create a check-cashing business?

Like any business, registration and licensing are important. There are federal policies as well as local or state policies that need to be considered. As a general policy, any business that involves the payment of a fee falls under the Money Service Business or MSB. The company must use approved and controlled accounting methods. You are also expected to provide your list of agents and any reports that may be associated with money laundering cases. It is highly recommended to have an attorney to help you with the process. Note that apart from federal and state laws, the company must also comply with the Patriot Act and Bank Secrecy Act.

As part of the business creation process, you also need to identify your own control policy, especially if you plan to branch out one day. The policy basically offers a quick list of what type of check you are willing to pay. Examples are money orders, payrolls, personal, business, state or government checks. On top of these, you also need to identify which ID you want your customers to show – driver’s license, government issued, passport or company ID.

Since money service companies are also considered high risks, you only have to conceptualize what type of inlet method you want to apply. It is urged that ‘cold cash’ is not used for any transaction. Debit cards and other PIN-enabled cards are also great options. Loading ATM or prepaid cards is recommended. In addition, it would also help ensure that your business is equipped with 24-hour security system, surveillance cameras, sensor-sensitive doors and bulletproof glass.