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Connecticut - Check Cashing Service License

Introduction

To operate a check cashing business in Connecticut, you must be licensed through the Department of Banking. The state has specific rules to protect consumers and ensure businesses handle financial transactions responsibly. If you’re planning to cash checks for a fee, proper licensing is not optional—it’s the law.

 

Licensing Requirements

Connecticut requires a Check Cashing Service License for any person or business that cashes checks for a fee. The main requirements include:

  • Submitting an application through the Nationwide Multistate Licensing System (NMLS).

  • Providing fingerprints and background checks for control persons.

  • Meeting minimum capital and net worth requirements.

  • Submitting a detailed business plan and compliance policies.

  • Providing a lease agreement if operating from a physical location.

 

Certain exemptions may apply to grocery stores and retail establishments that meet specific thresholds and limits under the “Limited Facility” license.

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Regulations and Compliance

Connecticut regulates check cashers under strict guidelines:

  • Maximum fees allowed per transaction are defined by statute (e.g., 2% of the face value or $1, whichever is greater, for most checks).

  • ID verification is required for every customer.

  • Businesses must maintain accurate records of all transactions.

  • Licensed entities are subject to regular state examinations and must follow written compliance procedures.

Businesses offering check cashing at more than one location must apply for a license for each site.

 

Processing Time

The approval timeline varies, but most complete applications are reviewed within 60 to 90 days, assuming no major issues or missing documents.

 

How We Can Help

We take the stress out of licensing. Our team will:

  • Prepare and file your entire Connecticut license application.

  • Develop a compliance program tailored to Connecticut’s laws.

  • Help you gather supporting documents and financial statements.

  • Guide you through fingerprinting and background checks.

  • Make sure you avoid delays and costly mistakes.

 

FAQs

Q: Do I need a separate license for each location?
A: Yes. Each physical location that cashes checks must have its own license.

 

Q: What happens if I operate without a license?
A: Unlicensed check cashing is illegal in Connecticut and could result in fines, shutdowns, and legal action. It’s always best to get licensed properly before you begin operating.

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