Maximum Check Casher Fee

Summary

The New York State Department of Financial Services has updated the maximum fees licensed check cashers may charge for cashing government and personal checks. Licensees must now cap government benefit check fees at 1.5% and personal check fees at the greater of $1 or 2.2%, requiring immediate updates to required signage.

Industry Letter

January 30, 2023

Industry Letter: Maximum Check Casher Fee

To the Licensed Check Casher Addressed:

Pursuant to the amended Part 400.11 of the Superintendent’s Regulations, this is to advise you that effective January 18, 2023, the maximum fee that licensed check cashers may charge for the cashing of checks, drafts, or money orders for payees of such checks, drafts, or money orders that are natural persons is not to exceed:

1.5 percent of the amount of the check issued by the federal or a State government agency for the payment to the bearer of federal or State monetary assistance, Social Security, unemployment compensation, retirement, veteran’s benefit, emergency relief or housing assistance, or a tax refund; or
$1 or 2.2 percent of the amount of all other check, drafts or money orders, whichever is greater.

Please revise your signage accordingly.

You can refer to the full text of the amended regulation at Regulations - Final Adoptions: Banking

Should you have questions, kindly contact the Department’s relationship manager for your entity.

Sincerely,

Wendy Henry
Deputy Superintendent | Banking
Licensed Financial Services

Common questions

What does "Maximum Check Casher Fee" cover?

The New York State Department of Financial Services has updated the maximum fees licensed check cashers may charge for cashing government and personal…

Which agency issued this update?

This update was issued by New York State Department of Financial Services.

When was it published?

It was published on January 30, 2023.

Summary

Industry Letter

Common questions

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