There is a check cashing company behind every handy check cashing service. Over 13,000 check-cashing locations were open in the United States in 2015. Check cashing services alone account for more than $56 billion in revenue for Financial Service Centers of America, Inc. (FiSCA). There are $105 billion in check cashing transactions if you include cash advances (payday loans), wire transfers, and prepaid debit cards (based on 2007 data).
Alternative financial services were used by at least one-fourth of all American households in 2012. Underbanked and unbanked Americans are turning to check cashing businesses as a remedy to their financial marginalization. Amidst rising competition and derisking, check cashers are still providing essential financial services in their communities.
However, if you have a check to cash, then a check cashing store in Pompano Beach is just your right bet.
How Does the Check Cashing Process?
Check cashing is so popular because of the convenience it provides. Simply put, individuals have checks to cash and can only get money via check cashing services. For a number of reasons, people resort to check cashers to convert their salary checks into cash. A bank account is not required in many circumstances. Many Americans are unable to use traditional checking accounts because of high minimum balances, monthly fees, and overdraft penalties.
Checks are cashed at a check cashing establishment, so get best deal. The check casher verifies the client’s identification, accepts the check, clears the money, and provides the customer cash. There is a charge associated with this transaction to cover the costs of the company and the check cashing service.
Other people have check accounts but use check cashers when they need money quickly. After 24 to 72 hours, even if you have a typical checking account, you may not have the entire amount of your cash available to you. A check casher is a lifesaver when you’re short on cash (say, because you are paid on the same day as your rent and utility payments are due).
An inside look at a check cashing business
Lisa Servon spent four years researching and writing her book, The Unbanking of America: How the New Middle-Class Survives while working with a variety of alternative financial service companies. She was not expecting to learn anything new about the check-cashing sector since she is a university professor. However, working behind a check cashing counter showed her that people who use check cashing services do so because it helps them stay within their budget.
That the underbanked are in need of financial advice is a misconception, according to Servon. According to her findings, lower-income families are more conscientious about their spending than higher-income families. A check cashing facility was thus the best option for the services required. The fact that check cashers have known this for a long time has come as a surprise to some.
Forging long-term ties with their customers, check cashing businesses build consumer loyalty. There are several long-term check cashing connections. A check casher’s personal service is a welcome alternative to the sometimes impersonal treatment that customers get from large institutions. Were you wondering how a check cashing company works?
In the check cashing industry, there are three main categories of businesses: stand-alone, retail, and commercial. These enterprises may either be run on their own or be franchised by another company. All check cashers who do more than $1,000 in transactions per day must be licensed. Federal and state governments regulate these certified check cashers. There is an incentive for unauthorized check-cashing businesses to avoid fraud and operate lawfully, even if they aren’t regulated.
For more information, connect with Atlantic Check Cashing Store!
