Financial Services

New York Raises Check Cashing Fees

Istock 610450660 (1)

Effective February 26, 2021, New York State has increased the maximum fee that check cashers in New York State may charge.  The increase is to 2.27 percent of the face amount of a check, draft, or money order.  The increase is permitted under Part 400.11 of New York State’s Superintendent’s Regulations which provides for an annual fee adjustment, based upon the increase in the consumer price index (CPI) of the New York – Northern New Jersey – Long Island, NY – NJ-CT-PA area for all urban consumers.

The fact that the increase in New York is based upon inflation data from New Jersey, Connecticut and Pennsylvania seems a bit of a stretch, but is likely based on the challenge of collecting accurate inflation data by state.

Super Charging the Data Governance Process in Financial Services with Data Lineage
Super Charging the Data Governance Process in Financial Services with Data Lineage

Download our guide to learn how data lineage can strengthen governance functions and get a 360-degree view of your data.

Get the Guide

Interestingly, New Jersey has a different percentage.  According to New Jersey Check Cashing Regulation 3:24-4.1, the following limits apply:

  1. For cashing a check payable to a recipient of Temporary Assistance for Needy Families (TANF), 1% of the face amount of the check, or $.90, whichever is greater.
  2. For cashing a check payable to a recipient of Supplemental Security Income pursuant to Subchapter XVI of the Social Security Act, 42 U.S.C. §§1381 et seq., 1.5% of the face amount of the check, or $.90, whichever is greater.
  3. For cashing a check payable to a recipient of Old-Age and Survivors benefit payments pursuant to Subchapter II of the Social Security Act, 42 U.S.C. §§401 et seq., 1.5% of the face amount of the check, or $.90, whichever is greater.
  4. For cashing any other check, 2.21% of the face amount of the check, or $1.00, whichever is greater.

The difference means that a person cashing a $300 TANF check in Jersey City would pay a $3 fee and receive $297 back, while the same check cashed on the other side of the harbor in New York would pay a fee of $6.81, and receive $293.19 back from the check casher.

 

About the Author

Carl is certified in the Scaled Agile Framework (SAFe), a Scrum Master, and a Six Sigma Green Belt project manager with more than 25 years of experience in financial services overseeing large-scale development global, multi-currency accounting, regulatory reporting, and financial reporting software platforms. He has hands-on experience completing, reviewing, and filing Federal Reserve, FFIEC, and IRS reports, including Call Reports, Y9C reports, 2900 reports, TIC reports, and arbitrage rebate reports.

More from this Author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe to the Weekly Blog Digest:

Sign Up