Friday, September 21, 2007

U.S. expands check-cashing program

U.S. Bank is expanding to Denver a service it tested in Colorado Springs that allows noncustomers to cash some types of payroll and government checks.
The service, which uses special software from Texas-based Valid Systems Inc. to verify the recipients identity by checking multiple databases, is now available at the bank’s 62 Denver area branches. The system had been tested in Colorado Springs since January.
The bank reported a 50 percent increase in transaction during the the second month and nearly half of all users becoming repeat customers by the third month. The bank also said branches increased new account openings by the second month of the program.
U.S. Bank charges a 1 percent fee ($1 for every $100 paid through the check) to cash preprinted payroll, government or tax refund checks up to $2,500. More than half of the participants in the program in mid-April were between 18 and 29 years old, the bank said.

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