April 17, 2007
Dear Mr. [---]
You have asked for an opinion as to whether conducting the following activities would require [---]("Supermarket") to be licensed as a check casher under Article 9-A of New York's Banking Law ("NYBL"). As you have explained, Supermarket is a small grocery store that extends credit to certain regular customers. It does so by selling groceries and products to the customers who pay for the goods at a later date. Typically, under these circumstances, a customer will make payment for the goods at a later date when they get paid by having Supermarket cash their payroll check. Supermarket will cash the check, take the money that is due and owing it for the goods already sold to the customer, and then return to the customer the funds remaining from the cashed payroll check. You have indicated that Supermarket does not charge the customer for providing this extension of credit. Therefore, it costs the customer nothing for the extension of credit.
In your correspondence you have also explained that as a favor for a few customers and family members of your employees you have also cashed about five to ten checks for these persons. Similarly, you have not charged them for cashing these checks.
Based on the above description of the activities that you have inquired about, the State of New York Banking Department is of the opinion that such activities do not require a check cashing license under Section 374 of Article 9A of the NYBL since you have charged nothing to the customers or others for cashing their checks.If you have any questions, I can be reached at (212) 709-1650.
Christine R. Cardi