How to Open a Check Cashing Store

In exchange for a fee, check cashing stores provide financial services such as check cashing, bill payment, money transfers and payday loans. Federal and state laws regulate the check cashing business. Opening a check cashing store can be profitable with a detailed business plan and funding.

Instructions

1. Research the state and federal regulations on check cashing stores. States determine the interest rate you may charge to cash a check. Rates often vary according to the type of check being cashed, such as a Social Security disability check or income tax check.

2. Write a business plan. Research check cashing operations, such as using the proper accounting software and point-of-sale computers. Contact the Small Business Administration about business advice and funding information. Decide if you wan to to open an independent store or buy a franchise. Talk to existing check cashing store owners about the pros and cons of owning this type of business.

3. Find a location in a safe high-visibility area where customers can find your business. Ensure it is properly zoned in shopping centers or strip malls with lots of drive-by traffic.

4. Apply for business licenses. When you open a check cashing store, most states require business information to prove your financial health and assets. This information is submitted to the state and/or the U.S. Department of the Treasury. Register your business for tax identification numbers at the state, federal and local levels.

5. Invest in check cashing equipment. For example, a check cashing business needs a security system, a video surveillance system and bulletproof glass around the counters. This will help to protect your business and employees. Buy check cashing software that verifies various identities and verification tools for transactions.

6. Hire employees after conducting extensive background checks, interviews and credit checks. Most check cashing businesses hire employees with decent credit and no criminal background history. In the check cashing business, you will need trustworthy people to help run your business.

7. Market your new check cashing business. Advertise on the radio and in the newspaper. Hang an eye-catching sign above your business location. Design a website that include your services and products. Consider adding bill payment services and cash advance loans to bring in more customers.

References

• "Check Cashing": What is check cashing
• "A touch of business": Check cashing

Resources

• Read this Article in Spanish