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    Implementation Guide for Check Cashing Program

    It is estimated that consumers spend $8 billion annually to cash checks at check cashing outlets. Check cashers reportedly cash 180 million checks totaling $55 billion each year.

    In 2006, the average cost to cash a payroll check was 4.11% of the face value. That means a worker would pay an average of $19.66 every week to cash a $478.41 payroll check at a check casher. That amounts to an annual cost of $1,022.32 to cash net earnings of $24,877.

    Credit unions can offer check cashing services at far more affordable terms and favorable conditions. Doing so provides them the opportunity to grow their membership with a sustainable product that makes sense for both the member and the credit union.

    To encourage more credit unions to jump into check cashing, an open source Check Cashing Implementation Guide is now available. Authored by Nancy Pierce, with support from Credit Union Association of New Mexico and the Texas Credit Union League, the guide provides tested business models and proven check cashing strategies.

DiscussionLeave a Comment

  1. Credit unions do so much for their communities and their members already, but adding a Check Cashing Service to their offerings widens their umbrella even more. With their non-profit status, credit unions are well-equipped to go into neighborhoods of lower economic activity where Check Cashers dominate and succeed. When people realize they can get the types of service they desire for a better deal, they will choose credit unions over any other financial institution.

    Can’t wait to read this whitepaper. Thanks for the info.

  2. Matt, I am glad you feel this way. check cashing is a simple way for credit unions to help members that really provides great benefit. For many check cashing is the entry to other products and services that they need and can be provided by credit unions. Tell me why you think more credit unions don’t cash new member or non member checks?

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