Wal-Mart seeks check-cashing license in Minnesota

Northwestern Financial Review, Feb 1-Feb 14, 2004 by Bengtson, Tom

Wal-Mart has filed an application with the Minnesota Department of Commerce to offer check cashing services at all 45 of its Minnesota stores. The application, which was filed in October, already has completed a 60-day public comment phase, giving the Commerce Department until later this month to grant or deny the Arkansas-based retailer's request.

Wal-Mart plans to cash computer generated payroll and government checks up to $1,000 at the check-out counter. The maximum fee will be $3, explained Melissa Berryhill of Wal-Mart corporate communications. Wal-Mart began testing this service in june 2002 and currently offers it in 20 states. Berryhill said customers using the service are responding favorably.

"Convenience was an over-riding factor in this decision," Berryhill said. "We know we have many customers across the United States who don't have bank accounts and we are happy to offer this service to them."

Berryhill said the company is working to establish the service in stores all over the country. She called the service a complement to other financial services already offered by Wal-Mart, such as money transfers, money orders and check printing.

Minnesota law requires companies that charge a fee to cash checks to be licensed by the Department of Commerce. If the application is granted, Wal-Mart would become the state's largest licensed check casher.

By Tom Bengtson