Entrepreneurs such as ian mackechnie saw the need for services that help people handle their money without using a bank, so they set up companies to offer these services.
Some of the services available are:
Check cashing – consumers can get personal checks, payroll checks, insurance, cashier and governments checks cashed as well as international checks, out-of-state checks and money orders. The consumer needs to produce a valid, government photo ID such as driver’s license or passport. In some cases, there is a fee for cashing these checks because the financial company needs to cover its risk. The state government regulates the amount the company can charge as a fee, and many services have lower fees than are allowed.
Money orders – consumers can purchase a money order for free, and pay only the face value of the money order at some financial service companies.
Cash advance – with proof of income, a bank account or a valid government photo ID, consumers can get a cash advance on their salary. The amount given is usually determined on the amount of the consumer’s income and the frequency they are paid. There is no credit check performed for this cash advance.
Prepaid Money card – consumers get an FDIC insured debit card for making purchases anywhere in the world that the card is accepted. They just make deposits into the card account and have the safety and freedom of a debit card. The card can be used for shopping online, paying bills and everyday purchases.
Western Union Money Transfer – consumers can send money to pay bills or to send money to a family member. The consumer will need to give his or her name, address, date of birth and telephone number as well as show a valid, government photo ID. The fees are determined by Western Union.
Other services – many consumers need to have documents notarized, and the best financial non-bank financial services offer Notary services. There is a small fee, and the consumer needs to show a valid, government photo ID.
An Alternative to Banks
"Almost 25 percent of the U.S. population does its financial transactions outside the financial mainstream of banks."
Check cashing – consumers can get personal checks, payroll checks, insurance, cashier and governments checks cashed as well as international checks, out-of-state checks and money orders. The consumer needs to produce a valid, government photo ID such as driver’s license or passport. In some cases, there is a fee for cashing these checks because the financial company needs to cover its risk. The state government regulates the amount the company can charge as a fee, and many services have lower fees than are allowed.
Money orders – consumers can purchase a money order for free, and pay only the face value of the money order at some financial service companies.
Cash advance – with proof of income, a bank account or a valid government photo ID, consumers can get a cash advance on their salary. The amount given is usually determined on the amount of the consumer’s income and the frequency they are paid. There is no credit check performed for this cash advance.
Prepaid Money card – consumers get an FDIC insured debit card for making purchases anywhere in the world that the card is accepted. They just make deposits into the card account and have the safety and freedom of a debit card. The card can be used for shopping online, paying bills and everyday purchases. Western Union Money Transfer – consumers can send money to pay bills or to send money to a family member. The consumer will need to give his or her name, address, date of birth and telephone number as well as show a valid, government photo ID. The fees are determined by Western Union.
Other services – many consumers need to have documents notarized, and the best financial non-bank financial services offer Notary services. There is a small fee, and the consumer needs to show a valid, government photo ID.
There also have a photocopier and sell stamps and envelopes. Customers can write a letter, put it in an envelope, buy a stamp and mail it right at the service center.
Consumers can also pay their utility bills. If their utility company is not listed by the financial service company, they will usually be happy to add a new utility to the list in order to make life more convenient for their customers.
Consumers can also pay their utility bills. If their utility company is not listed by the financial service company, they will usually be happy to add a new utility to the list in order to make life more convenient for their customers.
The same can be said for cell phone bills, if the cell phone provider is on their list.
A high-quality financial service company is like a personal office for people who are looking for non-bank financial services. They can cash checks, send money, pay bills and have postal services all in the same place.
Many of these companies participate in local, community organizations and develop a working relationship with the people in their neighborhood. It is not necessary for consumers to deal with the high costs and inconvenience of using banks.
