CHEQUE CASHING | Logbook Loans Glossary | Autopawn

At Autopawn, the majority of our agents, where the loans are written have a cheque cashing facility. This facility is very useful for the unbanked or those that cannot wait for a cheque to clear through the banking system. A lot of migrant workers find this a valuable service as many are unable to obtain a bank account.

The way that third party cheque cashing works is that a member of the public will visit a cheque casher with, for example, a wages cheque made payable to the customer (the 'payee'). The cheque casher, by virtue of the Money Laundering Regulations will make suitable checks to identify and verify the customer and, if satisfied that the person is who they say they are, may decide to cash the cheque. It is also likely that the cheque casher will make enquiries about the cheque with the drawer (i.e. whoever wrote the cheque).

There is a charge for this service which is usually deducted from the face value of the cheque. The cheque casher pays the customer, less the fee, and the customer walks away with the cash in their hands. The cheque is then banked by the cheque casher and payment made by the drawer of the cheque.