USPS, postal union defends check-cashing pilot despite lack of customers

The Postal Service is defending a nearly yearlong check-cashing pilot, despite a quiet rollout and a lack of customers.

USPS attorneys told the Postal Regulatory Commission, in a filing last week, that allowing customers to purchase single-use gift cards worth up to $500, using a business or payroll checks as payment, doesn’t count as the agency branching out into new, non-postal services, as restricted by the Postal Accountability and Enhancement Act.

USPS charges a flat fee of $5.95, won’t accept checks larger than $500 and won’t disburse cash for any checks. Four post office locations are currently participating in the pilot in Washington; Baltimore; Falls Church, Virginia, and the Bronx, New York.

USPS said the check-cashing pilot simply allows for a new form of payment for gift cards it’s been selling for more than a decade, along with greeting cards and stationery the agency has been permitted to sell.


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USPS is opening themselves up to check fraud and will causes losses and extra work for postal inspectors, this is a self inflicted wound.

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