Thinking of using a check cashing shop to cash a social security check, personal check or some other kind of check? You might be wary of just how safe these shops are; especially if you have a particularly large amount of money to cash.
There are many independent check-cashing shops up and down the country; some more recognizable than others – but that doesn’t mean that they shouldn’t be trusted. In fact, the check-cashing industry cashes around $60bn in checks every year, according to the Financial Service Centers of America, Inc. (FiSCA)
The check-cashing industry cashes over $60 billion (estimates vary) annually while employing over 83,000 individuals at around 16,500 locations.
Each state has different regulations, however in most cases – including in Connecticut; check-cashing shops must be licensed to be able to operate.
In the state of CT businesses that cash checks and process money orders must be licensed by the Connecticut Department of Banking. Find out how you can verify a check cashing shop’s license using the website.
Licensed shops have regulations limiting the fees they can charge for cashing a check. In Connecticut for instance this is 1% for state checks and 2% for standard checks – at the time of writing. You don’t have to worry about a check-cashing shop scamming you with the wrong fees because if they’re licensed they won’t be allowed. Check-cashing shops provide their fees upfront – so you know what you’re paying before you use their services.