Topic: Check Cashing Fees
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Can we limit the amount of cash we will provide to a non-customer when they present an on-us check in person? We would pay the remainder with a cashier’s check. Our deposit account terms describe the check cashing fees and identification requirements for non-customers, but they do not indicate that we may refuse to cash a customer’s check for a non-customer.
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We recommend consulting with your bank counsel to amend your account agreements before setting a limit on cashing checks for noncustomers. By setting a limit on cashing checks, your bank would be refusing to cash (or fully cash) some checks issued by your customers to noncustomers. While it is unlikely that a noncustomer would have…
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May banks in Illinois dishonor checks that are properly payable when presented by a non-customer to cash? We have a policy of not cashing “on us” checks for non-customers. Is this permissible?
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Yes, we believe it is permissible to dishonor a check when presented by a non-customer to cash. However, you should review your account agreements to ensure that the bank has not directly or indirectly agreed to cash checks drawn by your customers and presented by non-customers. When refusing to cash an otherwise bona fide check…
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Are there any Illinois or federal regulations that require us to cash checks drawn on our bank for noncustomers?
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No, we are not aware of any law that would require you to cash a check drawn on your bank when the check is presented by a noncustomer. However, you should review your account agreements to ensure that the bank has not directly or indirectly agreed to cash checks drawn by your customers and presented…
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Can we charge a fee to any non-customer who presents a check for cashing, particularly when the check is drawn on an account at our bank (for example, a payroll check for a business customer)?
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We are not aware of any limitations on check cashing fees in Illinois law. We do recommend that you review your account agreements to see if the fee is disclosed; this will ensure that you do not run into problems with non-accountholders who refuse to pay the check cashing fee when the check was written…
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Are there any limitations on the check cashing fees that we can charge under Illinois law?
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We are not aware of any limitations on check cashing fees in Illinois law. We do recommend that you review your account agreements to see if the fee is disclosed; this will ensure that you do not run into problems with non-customers who refuse to pay the check cashing fee when the check was written…
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We have non-customers who are bringing in H&R Block cash advance cards, which they want to exchange for cash. Can we charge a cash advance fee?
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We do not believe that any Illinois or federal laws or regulations would prohibit you from charging a fee to non-customers for cash advances. Therefore, the issue does depend on your agreement with MasterCard. The rules can be found in Chapter 8.9 of the MasterCard rules (“Cash Disbursements”). Assuming that these are the rules that…
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Is there an Illinois law that requires banks to cash government checks (social security or IRS refund checks) for non-customers?
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We are not aware of any Illinois law that requires banks to cash Social Security checks and IRS refund checks for non-customers. Of course, an individual who is 65 or older who is denied the right to cash a Social Security check at your bank may request that you establish a Basic Checking Account for…