To operate a check cashing business in California, you need a California check cashing permit from the state Department of Justice. The application costs $50 per business location, plus $32 per person for fingerprint processing, and it is governed by California Civil Code Sections 1789.30 through 1789.38. The permit is valid for one year, and everyone with an ownership stake of 10% or more has to pass a criminal background check.
The permit itself is the easy part. The fee caps, posting rules, and federal registration that come with it are where most operators get into trouble.
Who Needs the Permit
California defines a check casher as any person or business that, for compensation, cashes checks, warrants, drafts, money orders, or similar instruments. If you charge anything at all to cash a check, you need a permit, no matter how few checks you cash.1California Legislative Information. California Civil Code 1789-31
Two categories are exempt. The first is banks, savings associations, credit unions, and industrial loan companies chartered by the state or federal government. The second is retail sellers whose main business is selling consumer goods and who cash checks or issue money orders for no more than $2 per transaction as an incidental service.
Each business location needs its own permit. Three storefronts means three applications and three $50 fees.
How to Apply
Applications go to the DOJ’s Check Casher Permit Program. The written application includes the business name, type of business, and address. A sole proprietor signs personally. For a partnership, corporation, or LLC, a member or authorized officer signs, and the application must list all partners or all officers and shareholders who hold 10% or more ownership.2California Legislative Information. California Civil Code 1789-37
Corporations and LLCs must also submit a copy of their original Statement of Information filed with the Secretary of State. Every person listed on the application has to disclose their Social Security number. The DOJ treats omissions or misstatements as grounds for automatic denial.3California Department of Justice. Check Casher Permit Program – Information and Instructions
The fees:
- Initial application: $50 per business location
- Fingerprint card processing: $32 per person, unless that person is already associated with an active DOJ check casher permit
- Renewal: $50 per location, annually
All fees are nonrefundable, even if the application is denied or withdrawn. Cash is not accepted; payments go to the Department of Justice.4New York Codes, Rules and Regulations. California Code of Regulations 991.3 – Fees
Fingerprints and Background Checks
Every person named on the application submits fingerprints. That means sole proprietors, partners, corporate officers, and 10%-plus shareholders. In California this runs through Live Scan: you get a BCIA 8016 form (Request for Live Scan Service), take it to a certified operator with valid ID, and the prints go electronically to the California DOJ and the FBI for criminal history checks.5California Department of Justice. Fingerprint Background Checks
Applicants outside California who cannot access Live Scan may submit a traditional fingerprint card with the $32 processing fee.
The DOJ must deny a permit if any applicant has a felony conviction involving dishonesty, fraud, or deceit, provided the crime is substantially related to the duties of someone in the check cashing business.2California Legislative Information. California Civil Code 1789-37 In practice, convictions for fraud, forgery, identity theft, embezzlement, and money laundering are virtually certain disqualifiers. The statute does not create a blanket bar for every felony; a felony DUI, for instance, would not automatically trigger denial.
Fee Caps and Posting Rules
California caps what you can charge for the most common check types and requires you to post every fee where customers can see it. These rules catch permit holders more often than the application process itself.
Maximum Fees
For payroll and government checks, the maximum fee is 3% of the face value when the customer provides valid identification, or 3.5% without identification, whichever is greater compared to a $3 minimum. Acceptable identification is limited to a California driver’s license, a California identification card, or a valid U.S. military identification card.6California Legislative Information. California Civil Code Title 1.6F – Check Cashers
Personal checks cashed for immediate deposit carry a higher cap of 12% of face value. You may also charge up to $10 to set up an initial account and issue an optional identification card, and up to $5 for a replacement card. Every transaction requires a receipt.
Posted Fee Schedule
Under Civil Code Section 1789.30, every check cashing business must post a complete, detailed, and unambiguous schedule of all fees for cashing checks, selling or issuing money orders, and issuing identification cards. The lettering must be at least one-half inch tall, in a conspicuous location visible to the public inside the premises. You must also post a list of valid identification you accept.
Failing to post this information, or charging fees that don’t match what’s posted, is an unfair business practice under Business and Professions Code Section 17200. That opens the door to injunctions, restitution orders, and civil penalties that go beyond the check cashing statutes themselves.
Federal MSB Registration
The state permit is only half the picture. If your business cashes more than $1,000 in checks for any single person on any given day, you meet the federal definition of a check casher under the Bank Secrecy Act and must register with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business.7FinCEN. Guidance on Definition of Check Casher and BSA Requirements
Registration is done on FinCEN Form 107, filed within 180 days of establishing the business. One form covers every location. A copy of the filed registration and supporting documents must be kept at a U.S. location for five years. FinCEN encourages use of the BSA E-Filing System.8Financial Crimes Enforcement Network. Money Services Business (MSB) Registration
Federal registration renews every two years, a different cycle from the annual state permit. Missing the federal renewal is a separate violation, and the penalties are far steeper: civil penalties of up to $5,000 per day the violation continues, and criminal penalties under 18 U.S.C. ยง 1960 of up to five years in federal prison for knowingly operating an unregistered money transmitting business.9Financial Crimes Enforcement Network. Enforcement Actions for Failure to Register as a Money Services Business10Office of the Law Revision Counsel. 18 U.S. Code 1960 – Prohibition of Unlicensed Money Transmitting Businesses
A business that keeps its check cashing under $1,000 per person per day falls outside the BSA definition and does not need to register federally. Some small operators structure their policies that way deliberately, though proving you stayed under the threshold requires its own recordkeeping.
MSBs also have to maintain a written anti-money laundering program, verify customer identities, and file Currency Transaction Reports for any transaction or group of transactions exceeding $10,000 in a single business day for one customer. Check cashers are specifically excluded from the Suspicious Activity Report requirement, though voluntary filing is permitted.11Financial Crimes Enforcement Network. MSBs Subject to the SAR Requirement
Renewing the Permit
California check cashing permits expire one year from the date of issuance. File a renewal with the DOJ before the expiration date, along with the $50 renewal fee per location. Renewal includes another criminal history check, and the DOJ must deny renewal on the same grounds as an initial application. A fraud-related felony conviction picked up after your original permit will cost you at renewal.
If you also hold federal MSB registration, that runs on a separate two-year cycle. Both deadlines have to be tracked independently.
Penalties for Operating Without a Permit or Overcharging
A city attorney or district attorney can bring an enforcement action against any check cashing business operating without a current, valid DOJ permit. The civil penalties escalate:
- First offense: up to $1,000
- Second offense: up to $5,000
- Third offense within 10 years of the first: a misdemeanor punishable by up to six months in county jail, a fine of up to $5,000, or both
The dollar figures are modest by financial services standards, which is probably why some operators risk skipping the permit. The bigger practical cost is the enforcement record, which makes future permits harder to obtain and draws federal attention.
Charging more than the statutory caps or failing to post your fees properly is an unfair business practice under Business and Professions Code Section 17200. Section 17200 enforcement can include injunctions, disgorgement of profits, and civil penalties well beyond what the check cashing statutes impose. Violating the fee caps on payroll or government checks can also draw penalties under Civil Code Section 1789.35(e).
Local Zoning
State law does not impose proximity or zoning restrictions on check cashers, but many California cities and counties do. Oakland requires a special permit and prohibits check cashers from locating within 1,000 feet of another check casher or within 500 feet of schools, banks, churches, or liquor stores. Sacramento has similar distance requirements and also limits operating hours. Check local zoning before you sign a lease; a valid state permit does not override a city ordinance.