check cashing business

[steve lee]

I just opened my checkcashing business after I got the MD state check cashier license. But 4 out of 25 checks which I received has been bounced, some "REFER to MAKER", "NSF(insurficent funds)", "counterfeit(fraud)" checks...
I now really realized that doing check-cashing business is so so dangerous, not only losing BIG money, but could be robbery-target....
But I still would like to know why there are so many check-cashig stores out there and even local community grocery and liquor stores do the check-cashing as a auxulious business....
why they continue do this?
how they not lose money??
is there any "SECRET" doing this business?

What should I do when customer presents check to cash it in my store?
what information and identification check do I need to do?
I think, fundamentally, there is no 100% secure way not to lose money by cashing bad check, since the bad guy knows what and how check cashier do when they process check,so they already made fake ID and fake address and phone numbers on real check(maybe stolen check or virture company,etc), so even though I did check and copy their id and verified the check issued company and the person's id and they all appear to be good, but actually it's fake check or virtually fake company's check, so I know after I deposit that check in the bank...
then it's TOO late.
The bas guy already took cash and gone, the address on the check and on the his ID card are all fake, so how can I sue HIM??

1) Do you have any idea how can I protect my check-cashing business from this bad guy?

2) if check bounced, what can I do in ordee to get the money back??

3) DO I need to simply shut down my check cashing business now before I lose more money?

Any advise will be greatly appreciated...

Thanks

On counterfeit and "refer to maker" checks you may want to check with your local police department or district attorney office. With many DA offices they have something called a "bad check restitution program" or a "worthless check unit."

I think most who are in the business of collecting bounced checks will tell you the most difficult types of checks to collect are those associated with the payday loan and cash advance industries. You may find that your local police department will not accept them. Some collection agencies may not handle them either. I work with one (NorthStar Technologies) that does process them as a no-fees contingency split; if the checks cannot be collected, NorthStar absorbs the collection costs. If it can collect, you receive 50% back of everything that is collected. There is an old saying in the collection business: "50% of something is better than 100% of nothing."

You could look into a "check guarantee service," but they may not want to process payday loan/cash advance checks, or their fees may be very high.

The check-cashing business is not an easy business to operate. There are several scam artists who make a lot of money cashing fraud checks. when verifying checks to cash, you HAVE to call the maker of the check and verify the issuance of the check. Simple quesitons like "what is the check number" or "how much is the check" are not good enough. Those type of questions are too easy for scam artists to answer. Instead use questions such as "how long has (customer) worked for your company" or "what type of work does (customer) do at your company" or "what are some of the names of co-workers or bosses". More than likely, if the check is fraud, then the maker and the payee (customer) will not be able to give the same answer. If the answers do not match, call the police.
Also, read the Uniform Commerical Code (UCC). It is a document that governs negotiable items.

There are also firms that check the balance in accounts and help verify the check etc. I think you need to consult with operators of these stores to review the list options to help verify.

And you can always refuse of course if you don't feel you have enough info.

Are you interested in selling your business? If so, I know someone who may be interested in purchasing it from you.

[qploans]

INstead of selling business if u want to invest money on your business then you can go for personal loans

I do not know much about the check cashing business but I did have a plan to get involved in one later in the future. I've been researching systems that would avoid check scams and frauds and was led to this site at: [www.paychecksecure.com]

Here is an advise. Before you get optimistic in starting your own business; don't focus primarily on the benefits such as how much money you will make, how easy it may be for you, or someone talking you into it, but also focus on the weaknesses of the business including the risks you will face, customers FAQs, etc. Many people tend to mock me for giving advise they may already know, yet they still don't listen and end up losing hard earned money. I really hope this info. is useful to you and do hope your situation is resolved.

I would recommend you not to sell the business unless you are losing a lot of money. There are systems that avoid these treacherous scams. All you need to do is investigate/research in order to avoid business loss.

[senorcheckcashing]

ive been doing check cashing for a long time. if you have questions about this type of business you can contact me at my website.

SeÑor Check Cashing

[Manny4life]

what i would advise that you do is simply invest in the software. I work for Sun Trust banks and trust me i have seen fraudulent checks brought on behalf of Sun Trust or from travelers express. When you invest into the online system, you can do digital online verification right there and there. For example you can verify if a money order is valid or a travelers check is valid by entering the serial no on the website and it takes like 2mins to get green or red indication. Here are list of good check cashing software that will help. As for the ID's, it all goes back to that same online system. You can do online id verification against the state database or on federal level and the results should match on the check written.

DCS - Check Cashing software, Payday Loan software, Money Orders

digiCHECK.net

I hope this was able to help. Don't sell your business, invest into the software. if you have lost more than $5000 or more in a year, then u really need online verification system.

Manny