Why do supermarkets continue to cash payroll checks?
The average bad personal check ranges from $55.00 to $60.00. However, the average returned payroll check is usually four times greater at over $250.00! Supermarkets in the Carolinas have only recently started charging fees to cash payroll checks and other checks for cash while supermarkets in states such a Florida have been charging fees for many years. Fees are usually on a graduated scale based upon the value of the check or a percentage of the check must be used to purchase groceries. However, the income from such fees is dwarfed by the potential losses from fraudulent payroll checks. For example, a small grocery chain in NC suffered tremendous losses last year when they were targeted by a ring that left one store holding over $24,000 in bad checks in a single week! Debit and Credit Cards Will These Reduce the Number of Fraudlent Payroll Checks? Retailers fear that they must continue to accept payroll checks because they will lose business if they do not. However, times have changed
