When needing or wanting to cash a check, banks and savings and loans are not the only sources. Check-cashing services-whether in independent business or an additional service by a business-are sometimes viable alternatives. Legal Definition Check cashing entities are those not considered financial institutions but are regulated by law nonetheless. The single legal determination hinges on whether or not the entity cashes a single check or a series of checks totaling more than $1000 to one person. The payment can be for one check or a number of checks; only the total paid to one person is important. A company that cashes payroll checks for its employees, so long as even one person does not receive more than $1000, however presented, is not considered a check cashing business. Cashing and paying one or multiple checks totaling $1000.01 to the same person would qualify the business as a check cashing entity, and it must comply with all state and federal guidelines and restrictions. How They Operate Financial institutions often charge a fee for a non-account holder to cash a check. That same premise applies to commercial check cashing services. Regardless of separate business or divisional additional service, check-cashing services cannot operate [...]
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