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Check Cashing – Credit Union Center

Credit Union :Credit Union Center
Assets :$0
Address :2433 W. 31st St. | Wichita, KS 67217
Start Date :February 2005

Check Cashing Qualifications :

No credit union membership requirement

Only approved payroll or government checks are accepted

At first visit, a check cashing application must be completed

Must be able to verify customer’s address and employment

OFAC search completed

If approved, customer is given check cashing card that must be shown when cashing future checks

All checks cashed must be from the verified and approved employer

Rates, Fees, and Terms :

$3 for checks $700 or less

$6 for checks over $700

$3 for replacement cards if lost

Vendors/Systems Used :

An Excel spreadsheet is used to record customer’s name, check type (government or name of employer), social security number, etc. The spreadsheet is checked when cashing customer’s check to verify same employer

Check is cashed same as if processing a member’s check on data processing system, but listed as a non-member check

Target Market :

Those using more expensive check cashers

Marketing Strategy :

Signage on the front and side of the building

Word-of-mouth is effective, as well

Program Results/Statistics :

In 2008, a total of 2,242 checks were cashed providing income of $6,238

For the first 10 months of 2009, 1,236 checks have been cashed providing income of $5,335

Since the Center began cashing checks in 2005, it has experienced only one loss for $800

Member Benefits :

Check cashers can become members of any of the three credit unions if they meet member criteria. Some have done so, but many are unable to qualify because of Chexsystems records.

Additional Information :

The Credit Union Center began offering check cashing as an alternative for people who were paying very large check cashing fees. It also hoped to increase credit union membership for the three credit unions it serves. Linda Dvorak, the Center’s Manager, explains that the Center’s check cashing customers remain loyal and continue to do their business at the Center. Some have become credit union members, but others choose not to or don’t qualify because of past ChexSystems records. “But for these customers,” she points out, “the Center’s reasonable pricing structure makes the service valuable for them.”

She would encourage credit unions or CUSOs to offer check cashing services to non-members if they can legally do so. Losses have been minimal for the Center. “It’s not a risky business,” Dvorak explains, “as long as the service is limited to payroll and government checks and all verification procedures are followed.” She concludes that it is a good service to offer, but don’t expect to make a lot of income from it. “We are mostly trying to promote good will.”

Additional Information :

The Credit Union Center is a shared-branch CUSO for three credit unions in the Wichita area. It began offering check cashing services to non-members in 2005 as an alternative for people who were paying very large check cashing fees. In almost five years it has experienced only one loss for $800.