Check cashing companies offer a variety of goods and solutions such as money purchases, stamps, wire transfers, money advance loans and transit bus passes. These solutions provide additional revenue to check cashing companies. Although there are a large number of such businesses in the market, you should choose the one that best suits your needs.
Many check cashing stores offer identical solutions as the banking sector. They process checks and money purchases as well as printing money purchases for you. Some check cashing stores also offer solutions such as recognising the payment of bills or selling lottery tickets. Check cashing stores usually have higher charges than financial institutions for financial solutions and may not be consistent in how they charge.
Check cashing stores take a percentage of your check as their fee for cashing the check for you. They often determine charges based on percentages. For example, they may take 11% of the check if it is between $200 and $1000. Check cashing stores are not regulated by federal laws like financial institutions are, according to Future Money for Younger Grownups, so they can cost as high as they want.
Most check cashing stores apply greater rates than the banking sector do for check cashing solutions. According to Bankrate.com, the banking sector apply charges between $1 and $5 per check cashed for non-customers, which is not more than 5% of a $100 check and may not charge all of this to the clients of the bank. Banking sector check processing charges for financial institutions are generally negligible when compared to the check cashing charges. Future Money for Younger Grownups reports that clients can save up to $440 per year by opening a bank account with a reputed bank.
Check cashing stores usually cope with lower income clients than banking institutions. Some of these clients may be new with immigration issues or other individuals unfamiliar with or afraid of banking businesses. Those who had a banking account closed due to non payment of charges may also use check cashing stores.