How Does Cheque Cashing Work?

Cheque cashing is a service widely available in the UK where a bearer of a 3rd party cheque can get easily get instant cash without going through the hassle of conventional banking. In UK, this industry is regulated by HMRC as a Money service business and by the Office of fair trading (OFT) when money in advance services are provided along with the cheque cashing.

Benefits of a cheque cashing service

Here are some reasons and benefits of the cheque cashing service.

Many people don't like to operate a bank account of their own, or in some cases one may find it difficult to open a conventional high street bank account due to their past credit history or for not meeting some other conditions. Cheque cashing service is the only alternative for such people to get their 3rd party cheques cashed.

Access to instant cash. Even people who are already having bank accounts can use this service if they need cash instantly, as typically a high street bank will take up to 5 working days to cash a 3rd party cheque. But a cheque cashing service will provide instant cash, to meet immediate financial needs.

The service is available for anyone needing to cash a 3rd party cheque provided that they can prove their identity as per regulations. It is widely used among sole traders, SMEs, part time workers and those who undertake small odd jobs on a regular basis.

How does it work?

The customer can walk into the cheque cashing location with a 3rd party cheque drawn in their favour. The cashers will validate the customer's identity (one piece of photo ID and an address ID). If they are satisfied, they will offer the customer instant cash after deducting the fee from the face value of the cheque. If they are happy, we will cash the cheque and give you cash instantly.

Regulatory bodies

The cheque cashers have to be registered with HMRC as a money Service business and are governed by them for money Laundering Regulations. In UK British Cheque cashers association (BCCA) is the widely recognised trade association for companies providing cheque cashing and short term loan services. They represent their members in governmental and regulatory bodies here in the UK and in EU. They also act as an informal regulator of the industry through their constitution and strict code of practice.

Contact us today
Cash@Maxx have 3 convenient locations in Swansea, Llanelli and Bridgend.  Contact us today or call in to one of our locations and one of our friendly staff members will help