Check Cashing & Payday Advance Companies

The business model for check cashing and payday loan companies exposes them to a mixture of difficult to manage fraud and compliance issues.

As De Facto banking centers, check cashers must adhere to many of the same regulatory guidelines as banks and credit unions, which are among the most regulated entities in the world.

Check cashing businesses risk expensive fines for non–compliance with regulations and must take steps to ensure that point of sale employees can effectively verify the identity of the individuals cashing checks. Check cashing companies often also act as personal financial service centers; offering wire transfer and foreign remittance services, selling cashier’s checks or money orders and accepting payment for utility and cable companies. This diverse mix of financial activities requires businesses in this industry to implement processes that can protect consumers and meet compliance regulations.

Failure to validate identity today many times leads to fraud, which is costly and directly affects the bottom line as such violations not only lead to direct fraud losses, but may also incur costly fines that can amount to tens of thousands of dollars alone.

FraudFighter has an in–depth understanding of the check cashing fraud prevention environment and offers a diverse line of fraud prevention products that are easy to use, require little to no training and can aid in the validation of ID documents. FraudFighter™ protection controls stop fraud immediately and these state–of–the–art solutions can cost less than $100 per transaction counter.