Legal issue regarding cashing a paycheck (1 Viewer)

[Vanilla Guerrilla]

I'm pretty sure that commerce wouldn't grind to a halt if Walmart stopped cashing 3rd party checks. Logically (but quite possibly not legally), I would argue that by getting into the business of cashing checks made out to other people without checking with the bank that the checks are good, and charging a fee for that service, they're assuming the risk that they may pay out on some non-valid checks.

I used to work for Walmart, currently, IMO, work for a bank that I consider Walmart-esque.  I was asking because I know that there are things that are done within the banking industry that are kindof just done in a gentleman's fashion..  I've seen some decent options not followed in the past because it seemed draconian.    And having worked in Wally-world in the past, I know that they are brilliant at figuring out the efficient way of doing things from a corporate perspective.  Just worried that they will end up lowering that bar. 

 

[apalmer]

I'm pretty sure that commerce wouldn't grind to a halt if Walmart stopped cashing 3rd party checks. Logically (but quite possibly not legally), I would argue that by getting into the business of cashing checks made out to other people without checking with the bank that the checks are good, and charging a fee for that service, they're assuming the risk that they may pay out on some non-valid checks.

Sorry, we don't generally develop different laws for every entity in the country.  Walmart gets the same protection as a bank, S & L, credit union, or business that cashes a check (they all make money doing it, too, btw). You get the same protection if you cash a check for your child and the drawer suddenly decides that he shouldn't pay for that eBay purchase, even though you "assumed the risk" of your child dealing with someone they don't know .  The flow of commerce demands that "negotiable instruments" actually be negotiable.  

 

[Chemical X]

I am no eggspurt, but have light experience.  I think this transaction falls under the holder in due course rule.  you are responsible for the check to the casher; but the payee is now liable to you, either criminally or in another way.  you pay then go after the payee.