Check Casher Businesses - Who is a Check Casher

A “check casher” means a person or entity that for compensation engages, in whole or in part, in the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose (Civil Code Section 1789.31).

If your business meets this definition and at any time you charge a fee in excess of $2.00 to cash checks, then you are required to file information returns annually with FTB.

Exceptions

This law does not apply if:

  • You are a state and/or federally chartered bank, savings association, credit union, or you are a industrial loan company.
  • You are a retail seller engaged primarily in the business of selling consumer goods, including consumables, to retail buyers who cash checks or issue money orders for a minimum flat fee not exceeding two dollars ($2) as a service to its customers that is incidental to its main purpose or business (Civil Code Section 1789.31(a)).