4 ms·

Cashing checks is risky. The customer might not be who he says he is. The check might be fraudulent or it might simply bounce. By its nature the business has

Cashing checks is risky. The customer might not be who he says he is. The check might be fraudulent or it might simply bounce. By its nature the business has to keep lots of cash on-site, which means armored trucks to move it in (or risky trips to the bank) and insurance (or just taking the risk.) And of course there's rent to pay, salaries, etc. Banks face these same risks but they have other things to make up for it: they've already identified their account holders and they have long-term relationships with them. They also have their account holders' money, and can simply seize it if the check has problems. Also, their customers do not actually cash most of the checks they deposit, so there's less need to move cash around. All of that aside, if you think the check-cashing fees are so egregious and unacceptable, it seems there is a business opportunity waiting for you. Apparently if you open your own check-cashing place that charges fair fees that are so much lower than 2-3%, the business will come rushing in yet you'll still be profitable in light of the egregiousness of 2-3%, so what are you waiting for?

standardUser 5y ago
While I appreciate your brave defense of the status quo and how it harms poor people, I'd suggest you think outside of the box. There is no reason a check can't be verified almost instantly thanks to advances in technology, thereby reducing the risk to the check casher to zero. Perhaps regulations can allow exemptions for checks that cannot be verified. Or, better yet, the USPS can be used as this article discusses. But the idea that the current system is the best we can hope for is ludicrous.
- kube-system 5y ago
  > There is no reason a check can't be verified almost instantly thanks to advances in technology, thereby reducing the risk to the check casher to zero. How? How do you determine that the document hasn’t been altered or forged? How do you determine that the person is who they say they are?
  - awillen 5y ago
    He doesn't actually understand what he's talking about - he just thinks he can hand-wave away structural problems of the financial system by shaking his fist at companies that he perceives to be the problem because he doesn't understand them.
- massysett 5y ago
  > There is no reason a check can't be verified almost instantly thanks to advances in technology This is what an EBT card is, which is why so many government payments have shifted to them...

standardUser 5y ago

While I appreciate your brave defense of the status quo and how it harms poor people, I'd suggest you think outside of the box. There is no reason a check can't be verified almost instantly thanks to advances in technology, thereby reducing the risk to the check casher to zero. Perhaps regulations can allow exemptions for checks that cannot be verified. Or, better yet, the USPS can be used as this article discusses. But the idea that the current system is the best we can hope for is ludicrous.

kube-system 5y ago
> There is no reason a check can't be verified almost instantly thanks to advances in technology, thereby reducing the risk to the check casher to zero. How? How do you determine that the document hasn’t been altered or forged? How do you determine that the person is who they say they are?
- awillen 5y ago
  He doesn't actually understand what he's talking about - he just thinks he can hand-wave away structural problems of the financial system by shaking his fist at companies that he perceives to be the problem because he doesn't understand them.
massysett 5y ago
> There is no reason a check can't be verified almost instantly thanks to advances in technology This is what an EBT card is, which is why so many government payments have shifted to them...