Process Checks

• Check cashing involves either cashing a check immediately or holding it for a predetermined time for a fee and/or interest charge. Processing checks to guarantee and protect your capital is the primary job function of your company. Processing the check through verifying funds in the case of customers who immediately accept the bank draft or verifying employment and future availability of the funds when holding a check requires processing the transaction correctly. Confirm with your state attorney general's office or local court or law enforcement what data to write on the check or application to provide seamless collections if necessary as some states require specific data.
  
  

Collection

• Bad or fraudulent checks are a reality to a check cashing business. If all processing measures were performed correctly, you will have safeguards in place to make collection simple such as directions to a verified residence, place of employment and a signed authorization to Automated Clearing House draft, or ACH draft, the money directly from the checking account of your customer. Often a bad check will require calling the bank to confirm funds daily, especially on days in which assistance checks are deposited at the first of the month, and drafting the money quickly when it become available.
  
  

Marketing

• Marketing is important in check cashing as in any business. Knowing your community helps in this process. For instance, being aware of what day teachers and other employees that receive monthly paychecks get paid allows you to market when they are most likely to require your service. Using the Internet, social media, local newspapers, phone directories and even local bulletin boards can be labor-intensive but quite helpful. Overcoming a loan-shark stigma is important in becoming a a strong business. Superb customer service and implementing a referral program assist in this realm.
  
  

Other Considerations

• Maintaining and protecting cash flow is critical in this business. You must protect assets to continue to have money available to loan. This involves physical security as well. Check cashing operations can be a target of robbery as they are frequented by people who are more likely to be struggling financially and because they have cash readily available. You must protect your staff with an alarm system and a written security policy. Verify how you have your fees or procedures regulated by your city or state. Small claims court appearances are often a part of this business, and understanding statutes is important.