How to Start a Check Cashing Business

A check cashing business is a great way of conducting commerce. There are however, a few tricks of the trade you must first master like: researching cash-checking operations, finding a great business spot and getting ample financing.

Cash checking businesses are currently booming all over the US.

This type of business is a boon to all those who need emergency cash for a variety of reasons: bank deposits to avert overdraft fees, car repairs, home repairs, sudden medical expenses, utility bill payments or just ready cash on the go. This type of business is always a great venture – much better than money lending or bank loans because your clients are guaranteed to give you collateral: their next pay check! Although this may seem like a great business opportunity, there are a few tricks of the trade you must first master like: researching cash-checking operations, finding a great business spot and get ample financing.

Researching cash-checking operations is a no-brainer. In order to set up your business as smoothly as possible, you need to do this first and foremost. You need to find out regulations, local and federal policies, licensing and permits, etc. before you can actually start your business. Usually, for this type of business, you need to request a check cashing business application from the city or county departments. Also, you need to work out a feasible security system for your operations. Since you are dealing with a lot of cash, you need to secure your daily transactions. This is one type of business type that is considered as high-risk: you will have to deal with the possibility of being held-up, burglarized and the works. If you have enough finances, then you can go about and hire all the security you need. You can also install state of the art equipments for possible crime detection.

If however, security people and high-tech gadgetry are things way out of your budget, you can try other forms of security measures. Getting separate insurances for your business, your clients and your workers is a form of security measure, and should be an integral part of your business operations. You could also work out a system to detect bad-check writers. A bad check will inevitably make its way into your check cashing business and you need to detect it as soon as someone hands it over. So, as part of your security measures, you might want to hire a check-scanning firm to help cut down the incidence of fraud from your potential clientele.

Second step is to find your business a great spot to work in. A great place to set up shop is in a working district, near offices and work establishments. Around, near or in malls can also work since people usually go to the malls to conduct one or more business transactions. A residential area may not be a good place to put up your check cashing business. Also, try to make your shop as visible to pedestrians and passer-bys. This not only encourages more foot traffic into your shop, but thwarts possible robberies as well. A parking area will also help keep a healthy flow of customers into your check cashing business.

Lastly, in order to really make this business work, you need to have ample financing. It’s true that you need an incredible amount of money for your overhead expenses. Your initial investment decides whether you can open a check cashing franchise from an established name, or you can put up your own independent business. If you have this option, try to see if you can buy an existing business. This will make your setting up a lot easier, but it does come with its own set of problems. Plus, it may also come with a heftier price tag.

83 Comments

  • John Taylor said on January 20, 2010
    i wish to start a check cashing business in Heart Butte, Montana, United States
  • Anthony Ruffin said on January 22, 2010
    i am interested for this business. how can i start a check cashing business in Perth Amboy, NJ, US
  • Karen said on March 13, 2010
    i want to start a check cashing business in Providence, RI USA
  • Roy WIlson said on April 20, 2010
    I want to start a check cashing business in Baton Rouge, La USA
  • Tony Fiumeridi said on May 2, 2010
    I like to start a check cashing business in the northern Los Angeles area to include venture county. How should I get started? Any recommended reading or professional firms that can help me get started? Thank you.
  • Jay Yu said on May 3, 2010
    please help me to start a check cashing business in Brooklyn, NY
  • claudia said on May 13, 2010
    I would like to start a check cashing business in NYC. What is the start-up cost?
  • Phil Ogren said on June 13, 2010
    Want to open a check cashing business in Denver Metro area and short term loans too. Can you help; no experience in this area. Thanks, Phil
  • Ahmad said on June 28, 2010
    Hello, Want to open a check cashing business in Hamilton, Ontario CANADA. I need your Help, Thanks Ahmad
  • Teela said on June 30, 2010
    Hello, I am looking to start a checking business in tampa, florida USA. I have a question about the security that I would need to operate the business. Do I need running camera inside and outside the facility? And If so do I need do I keep them running 24 hours a day. Are there any rules and regulations that I need to abide by? Thanks for your time.
  • Jimmy Y. said on July 7, 2010
    I have a convenient store in Honolulu, HI and several customers would like me to cash their payroll checks(they don't have bank accounts). How hard would it be i.e. special equipment, licenses, insurance requirements, service fees? Thx
  • Carlon A said on July 27, 2010
    I have my own Beef Jerky store in Dodge City KS USA. I would like to expand my business and start a check cashing business. No experience in this area! Can you please help me accomplish my goals.
  • k zhu said on August 19, 2010
    i have a mini mart with moneygram service i like to add check cashing business i have no experience in this can you help out thank you. hila, PA
  • peter ortega said on September 13, 2010
    I would like to know about a check cashing business at my location or property. there is a western union moving out shortly they already done some ground work and I've been in some same location for 30 yr Business is 90% Hispanic I See a grate potential what dose it take to start up a biz hub. peter prortega@yahoo.com 323 573 2952 thank you.
  • richard gordon said on October 4, 2010
    I am the senior account manager for ENP enational payments. We are a Money Services Business with the latest technology and provide the most versatile platform in the industry. We also have loadable debit cards, no credit check line of credit for the load cards..bill pay..mobile marketing..warranteed check cashing...and we also have a payroll platform(cash back to employers)..will not cost more and usually less then what the cost is now... using a debit card as part of a Gold Rewards/discounts, cash back, coupons, web site, and yes real gold as a reward. Our services are complete, ongoing training, upgrades to software as needed, maintenance of equipment, financing for equipment etc. contact richard gordon at rgordon@enationalpayments.com 813-541-4263
  • Cory said on December 8, 2010
    I would like to know the cost of starting a check cashing business in Trenton, N.J.
  • Robert Walker said on December 21, 2010
    We have a few check cashings places but they don't really offer anything else such as financial planning. I want to start a check cashing business in Syracuse, NY. I run a very small holding company investors reply at gcg_work@yahoo.com
  • MR.BOND said on February 3, 2011
    MISSOURI CITY TX. IM OPENING A CHECK CASHING COMPANY AND I WANT TO PROVIDE MONEY GRAM OR WESTERN UNION, PLEASE HELP ME FIND WHERE TOO GO TO FIND OUT
  • John D. said on February 24, 2011
    I'm wanting to open a check cashing store in Albuquerque, NM and need some more tips and ideas.
  • kaleena brown said on March 13, 2011
    I would like to start a check cashing business would also like to no the cost of the software and the price of starting one in columbia, ms thanks ms leena
  • Ranieka said on June 2, 2011
    I want to open up a Check Cashing Store in Southaven or Hornlake, MS United States of America. Thanks, Ranieka
  • Sonny said on June 10, 2011
    I am interested in opening a check cashing business with bill pay, money gram, and western union in or around Philadelphia, Montgomery county or Bucks county. Thanks Sonny.
  • Nordia Tulloch said on August 15, 2011
    I would like to open a check cashing business with bill pay,money gram, and western union in or around Orlando,Orange County.I would also like to know the cost of starting such a business. Thanks Nordia
  • willie scott said on August 19, 2011
    I would like like to open a check cashing business with money gram and western union in Keysville. Ga
  • Valeria Gracuitti said on October 1, 2011
    I have two cashing ckecks business in AL and I am interested in open another one in Pensacola FL. My business has 90% of customers being spanish community. I have a MSB bank account and want to know what licenses I will need, if the MSB license I have, is valid for the State of Florida. Thank you
  • Kathy Howa said on October 19, 2011
    I have check cashing in Los Angeles. But bank very difficult (korean bank) please give me names of other banks which accept my business. This is a great site and already I learn a lot. thanks. KH
  • Dave Ambrose CPA said on November 7, 2011
    For those who wish to start a check cashing business,please speak to me before you begin that process in any state. I have been a CPA and a anti-money laundering specialist practicing in the north to Middle Atlantic States with thirty years of experience in auditing, evaluating and buying & selling check cashing business. This process has involved over the years. For those who wish to start a check cashing business, please speak to me before you begin that process in any state. I have been a Certified Public Accountant (CPA) for over 30 years and an anti-money laundering specialist( ACAMS) practicing over 8 years in the north east to Middle Atlantic States with thirty years of experience in auditing, evaluating and buying & selling check cashing business. This process has become very involved over the years to become quite Governmental regulated. For this reason, it is very important to speak to someone with professional experience and knowledge how the system works and functions in all phases of this business. Should you have any questions, please email me the questions, so I may guide you in the right direction or assist you in your new venture. Dave Ambrose, CPA/CAMS
  • Annel Espinoza said on November 23, 2011
    I would like to open a Cash Checking Business with other service like Notary Public, phone cards and Translation Service as well as either Western Union or Money Gram. But I dont know where to start.This would be in Willmar Minnesota.
  • jonathan said on January 5, 2012
    i am looking to open up a check cashing business and i already have the spot for it but i dont know were to begin or how to start in queens ny
  • caali said on January 14, 2012
    I want to open check chasing business in NYC (Brooklyn or Queens)along with western union or money gram. what is the procedure
  • kitty cooper said on February 23, 2012
    Waldorf, Brandywine Maryland. how to open a Check cashing business.
  • NELSON ESCOBAR said on February 28, 2012
    BALTIMORE Maryland. how to open a Check cashing business. MSB ACCOUNT WHERE TO GO
  • Pratik said on April 5, 2012
    I would like to open a Check cashing business in Milford, Massachusetts.
  • ED H said on April 24, 2012
    ROCKLEDGE FL...FULL SERVICE CHECK CASHING / WIRING ETC. I HAVE 100% FINANCING ALREADY APPROVED JUST NEED THE ASSISTANCE WITH LI CENSURE
  • Manda said on April 30, 2012
    I would like to open up my own check cashing business. My dad owns the building, it is located in a high traffic area,right in the middle of downtown Minneapolis. I know that it is a good location, but I dont know the process. Can you help?
  • Mohammed said on May 17, 2012
    I'm in Vancouver, Canada.Interested in opening cheque cashing business and i have all licenses already approved, but i dont know where to find cheque scanning company and what the procedure is?
  • Malkit Sappal said on May 27, 2012
    I have a gas station in Fort Lauderdale, Florida and I would like to set up Check Cashing business in my Station. Do I need special permission from the local City Authority? Secondly is there any company who can help me to set up this kind of business. Thanks
  • ZZubaida said on June 1, 2012
    hey everyone: i really need help opening MSB account in Chicago, IL. i have try many bank but they are not offering MSB account. help help help
  • Daved said on August 5, 2012
    Hello everybody, i was trying to open MSB account for my check cashing business in Gardena, California. is bank of America offers this account? its a new business & I'm looking for some constructive advice from some one who have experience on the business. I started on merchant bank in Carson California but I'm getting different response from the bank workers. i hope they will finish everything and start my business.
  • Joe said on September 7, 2012
    I would like to open a check cashing business with moneygram and other related services. I'm a former bank officer with 10 years of experience. I met a friend of mind who is willing to provide a space for my business. Hard to find a job now so maybe starting small business will help ease the burden. Looking forward to some help and direction.Santa Rosa , CA.
  • Ahmed Bhat said on September 24, 2012
    Hello, Is anybody out there who can help me set up a Check Cashing Business in Brooklyn, New York. I need to know the requirements and which governmental office to contact.
  • Kevin said on October 17, 2012
    I want to open a check cashing business in the Twin Cities, Minnesota
  • Abe said on October 31, 2012
    Hey guys I’m also trying to open too. IF you guys want to share ideas of how to-on this subject we can share ideas! Ex we can discuss which bank accept cash and check business, which software to use, state approval etc… email me at checkyourcash911@gmail.com. Good luck !!
  • pierre cadet said on November 17, 2012
    hi.... I am in the retail business inside the mall for 7 years believe me guys i cant take it anymore the holidays season is the only time that we make some good sales then after that we will have to keep that money at the bank to pay rent for the entire year til the next holiday. in this coming april my lease will be expired which will be exactly after the tax season i am planing not to renew my lease, get a cheaper place across from the mall for less money with no restrictions & regulations , notify my clienteles 3 month in advance , take my $6000.00 security deposit open a check cashing store with payday loans & bill payments i will explain the situation to the new landlord to see if he can allow me to keep certain amount of clothes at the check cashing store. i expect to have $12000.00 disposable to pay rent deposit and to buy equipments then an other $50000.00 to start the business, will that be enough? Is this a good idea? if yes how to start the check cashing business ? I need help please i cant afford any more mistakes in my life . I believe if i dont try something else i will loose my house next year.
  • sohan parhar said on November 28, 2012
    I want to start check cashing business in Brampton Ontario Canada. Please forward the information regarding any Government Regulations. An early reply will be highly appreciated. Thanks, Sohan
  • Scot said on November 28, 2012
    I want to start checking business either in Hyattsville Maryland or Clinton Maryland. I would like to know the capital and the procedure. Someone knows anything please reply. Thanks. Christer
  • Bart Pacifico said on November 29, 2012
    I'm looking at buying a business and came across an existing check cashing business that makes a lot of money and requires a large investment (makes over $500K a year profit and wants $3M).
    1) is this a good business to be in, pros and cons?
    2) Need to educate myself on the disadvantages of this type of business so can ask the right questions of the existing owner.
    2) What are the pitfalls?
    3) what to look for while checking it out.
    4) what are the signs I should look for to identify problems with this business
  • Cortez M. Charles said on December 4, 2012
    I am interested in opening a check cashing business with bill pay, money gram, and western union in or around Passaic New Jersey this business will buttress my tax and bookkeeping services.
  • Zachary said on December 14, 2012
    Hi @Cortez M. Charles - I'm also in this business and have an idea for you if you want to contact me. Zachary, My email is info@montrosechange.com
  • kamran miraj said on January 9, 2013
    i am interested in a check cashing business, bill pay, money transfer, and lotto, and lottery
  • FAN JANVIER said on January 21, 2013
    hi my name is fan janvier i would like to get some information about how to open a check cashing store in florida feel free to call me at this number 9545882977
  • FAN JANVIER said on January 21, 2013
    FIRST AMERICA MULTI SERVICES 495 NE 4TH STREET SUITE 2 DELRAY BEACH FLORIDA 33483
  • Luke Sims said on February 1, 2013
    I have over 10+ years in the check cashing industry. I owned numerous check cashing businesses and can help with questions on how to start the business, keep it going, and to NOT lose your money in the first few months of opening. I have all the secrets in this industry from prior experience and knowledge. I doubt anyone will know more than me on this forum. When you see the knowledge i have you will figure that out right away. Email me at payless.comm@gmail.com and we can get started. thanks
  • KJ singh said on February 3, 2013
    I would like to start an internet based payday loan business. Do you have a start up guide that I can pay to buy. Thanks..KJ
  • josephine balde said on April 4, 2013
    i'm located in stratford ct. i'm trying to ad check cashing/bill payment to my convenience store. how can i do that.
  • Shannon Harris said on July 4, 2013
    How does it cost to start up a small check cashing business
  • samuel ewing said on July 29, 2013
    Hi'luke thie\s is Sam Ewing im asking how much doe's it cost to setup a money gram or a check cashing business. thank you and hope youre having a nice day luke los angeles California USA.
  • samuel ewing said on July 29, 2013
    Hi Luke this Sam Ewing how much does it cost to start up money gram or check cashing business. no experience Los Angeles California,
  • Carine Simon said on August 12, 2013
    I live in Sunrise, FL and would love to start a check cashing store. I know someone who had a check cashing store and says it is lucrative and it does not cost that much to start. I cannot find a bank that will help and also how do I find a bank that offers this service. I have no experience and would like some more information on this process. Thank you.
  • Morris Jason said on August 16, 2013
    I want to open a cash checking business in St Louis Missouri. Please advice how i go about this. Thanks
  • John said on October 10, 2013
    My partner and I already own a pawn shop in small town Alabama. We already have an established location and a pretty good customer base. We are wanting to expand into check cashing to increase our income and to give borrowers more options than just collateral pawn service. Can you help us with some starting up information for Alabama? Thank you so much for your time.
  • Janak Chhabra said on November 1, 2013
    We live in Hamilton, ON, Canada and would love to start a check cashing and Pawn Business. We have no experience and would like some more information on this process. Please advice how we go about this. We already own a Variety Store with Building. We already have an established location and a pretty good customer base. We are wanting to expand into check cashing and Pawn Business to increase our income and to give customers more options than just variety store service. Can you help us with some starting up information for Hamilton, ON, Canada? Thank you so much for your time.
  • Bob Chapple beginner adviser said on November 13, 2013
    We have been in business for over a decade assisting people with establishing successful revenue producing check cashing businesses. We can provide information on state and federal licensing, AML Compliance, bank account establishment, systems to guarantee and deposit checks and provide the required record keeping the government mandates. We also assist with bill payment, prepaid wireless minutes, prepaid debit cards, credit card processing, etc. For additional information call toll free 1-877-743-9369

    Consultant || bob@pinnacle-limited.com

  • Mudiser Seraj said on December 25, 2013
    Hi, I am seriously looking into opening a check cashing business in Albany, new york. Can you give me further information on the laws, licenses, and other requirements I would need?
  • Helen l. said on December 28, 2013
    I am looking into open a check cashing business in California and i need help with licenses and all the rest of documents thank you.
  • Tariq Khan said on January 21, 2014
    I am looking to open a check cashing business in Milton Ontario Canada and need help how to get licenses and other requirement. Thanks
  • Julian said on February 7, 2014
    Merchants Bank of CA in Carson opens MSB accounts because of the Risk associated with MSB's there are only a few Banks that will bank you. I only know of two banks for sure. One is Bank Of the West and the other is as I said before Merchants Bank of CA in Carson.
  • Trishia said on June 21, 2014
    I have a MSB in Ny and need to find a new bank. Cap One is doing away with MSB accounts. Can someone give me a few names of banks I can consider
  • Eric Reese said on September 6, 2014
    I'm looking to start a check cashing business in the D.C. area. I am also looking to expand to Prince Georges county in Maryland. I want to know the best software and security system to buy. I need help on licenses and other requirements also.
  • David Forrest said on September 21, 2014
    515 Dr.Martin Luther king Blvd Bakersfield ca United States. I'm planing on starting a check cashing and paying bills business,what is the requirement for open up this business,the license,permit that im going need locally,state,and federal? Which bank going be the best for transactions,what security going be needed? What amount of cash needed to start this business!
  • Johnny said on November 17, 2014
    Hi I am interested in cheque cashing business in Ontario Canada. Please help me with the procedures. Thank you
  • Barbara said on January 29, 2015
    Please help me to start a check cashing business in Leflore County, Oklahoma
  • Will A said on March 13, 2015
    Looking to open a check cashing store in west palm beach, how much money would I need to start.
  • mojan said on March 19, 2015
    HI I am int in opening a ck cashing business any assist on regulation and requirements would be appreciated. asap
  • mojan said on March 19, 2015
    North york ontario Canada, I am int in adding a service to our foreign exchange business. i want to be able to cash checks. i need info on this such as regulation etc ..all info would be appreciated.
  • AFM Mahmudul Hassan said on April 20, 2015
    I am interested in opening a chaque cashing business in Montreal, Canada and i need help and suggestions in all respect in this regard.
  • sameeh said on August 17, 2015
    scarbo , toranto on canada
  • Mike said on October 12, 2015
    I would like to start my own check cashing business may be as a stand in one of the groceries stores but I do not want franchises,in Moreno Valley,CA.I need help please.
  • Myoa Hall said on October 25, 2015
    Interested in opening a Check Cashing business in Geismer, La. I want to cash checks, do titles, western union etc. I'd like some information on where to start.
  • Corey said on January 6, 2016
    i am interested in check cashing business Michigan.want to know the procedure and all.
  • Kenneth Aikens said on February 3, 2016
    i'm trying to open a check cashing business in GeorgiA. I HAVE A TAX OFFICE THAT I WILL BE ALSO DOING BUSINESS OUT OF FOR THE CHECK CASHING OPERATION. i WOULD LIKE TO ALSO INCORPORATE PAY DAY LOANS AND WESTERN UNION AND MONEY GRAM IF PERMITTED. I REALLY JUST NEED TO KNOW HOW TO GO ABOUT IT AS FAR AS HOW TO SET UP MY OWN FINANCIALS FOR USE AND SO FORTH
  • Michelle said on August 29, 2016
    The steps and requirements to start a cashing check here at Naples Florida.
  • Ricky said on December 14, 2016
    Please advise the steps and requirements to start a check cashing business in Louisiana, and also any franchise information that you might have.

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