In a previous article, I showed how foreign IDs make up a substantial portion of the check cashing market. In much of the West and South, you’re missing out on opportunity if you don’t accept foreign IDs for check cashing.
The next logical question is “what about risk?” It’s great to cash more checks, but not so great if you take a pile of fraudulent checks.
As it turns out, customers with Mexican IDs (typically matricula consular) actually carry LESS risk – about 25% less. Note: this data is specific to the 2,000 retail locations using Paycheck Secure check cashing software from AllTrust Networks.
The other good news is that the returns are of a better nature. NSFs are the “best” return, as you can often eventually collect from the account. Returns reasons such as fraud and account closed are next to impossible to collect.
For Mexico IDs, NSFs make up 80% of returned items, while the average is 65% nationwide.
Interested in accepting foreign IDs yet. Let’s recap. . .
- Significant portion of the market
- Lower return rates
- Better chance to collect when a return does happen
Let’s hear about your return and collections experiences in the comments.
