Consumers that need fast access to their payroll funds may visit a check cashing business. Banks will take two to three days to clear most local payroll checks that are issued by other banks. For consumers that need money on the same day, a check cashing business can provide a solution. Check cashing businesses provide a variety of products and services such as money orders, stamps, wire transfers, payday loans and transit bus passes. These services give additional revenue to check cashing businesses and they help create repeat customers.

Step 1.

Secure the proper licenses for a check cashing business in your state.

Step 2.

Choose a location for your check cashing business. Find busy streets that have factories or large employers nearby. Select areas that are near bus stops, convenience stores and shopping centers.

Step 3.

Secure your building. A counter with protective glass, security cameras and an alarm system will be required to protect your business and employees.

Step 4.

Post your fees. A checking business should display the charges or fees that will be assessed for all services. Most check cashing businesses earn fees by charging 1 percent to 3 percent of the face amount on payroll checks.

Step 5.

Obtain check cashing software and fraud detection systems to safeguard your operation. Specialized software will help detect bad checks and prevent your checking cashing business from losing money to criminals that employ deceptive schemes.

Step 6.

Set up other services such as Western Union or Money Gram to provide money transfer options to your customers. Also, consider selling state lottery tickets and preparing income taxes. Check cashing businesses that provide one-stop solutions for customers will benefit from additional streams of income.

Step 7.

Hire employees to help run your check cashing business. Perform criminal background checks on each employee you hire. You will need responsible employees that are honest and customer-service oriented. Contact references before hiring your employees.

Step 8.

Post banners and display advertisements around your building. Use signs to promote your check cashing business. Vinyl banners, posters and neon signs can help increase the exposure of your check cashing business.


A line of credit may ease your cash flow until checks that you have cashed are cleared by your bank.