Check cashing services allow customers to cash their checks and other negotiable instruments for a fee. Stores that offer check cashing make their money based on the fee they charge which is usually a percentage of the funds being cashed.
The fees charged by different check cashing services range. Some change 2.5%-9% depending on the amount of funds being cashed. Other check cashing stores charge $4 for every $100 cashed. The fees range depending on the franchise.
The principal type of checks cashed are payroll checks.
Check cashing operations also cash:
- money orders
- Federal and state tax refund checks
- insurance checks or drafts
Most check cashing franchises utilize a system that establishes the quality and the source of the check and determine if the funds are available before agreeing to cash it. These systems enable check cashing technology to be applied to a variety of payment types, large and small.
