“There are no problems – only opportunities.”
So the old saying goes and in today's world this couldn't be more applicable and timely to the Grocery Store Industry.
The Grocery Store Industry has been ill equipped to cash pay checks for a long time and is NOW faced with two IMMEDIATE challenges and a third, a looming PR nightmare!
Grocery Stores lack any type of technology to effectively and efficiently cash checks and yet the practice continues. If chasing ID and Check Fraud aren't enough reasons to eat up profits...
These three ought to leave you cold!
1. Federal US Treasury Regulations State:
Banks and all retailers (grocery stores) cashing checks and handling money are responsible to vet their customers under the Patriot Act Know Your Customer (KYC) rule.
Resulting in the impossible task of having the bank KYC the grocery stores customer and the 3rd party cashed pay check.
US Treasury Fines for money laundering are in the $2-65 million range!
HSBC recently got hit with $1.9 Billion in fines!
2. The Consumer Financial Protection Agency (CFBP)
The CFPB now requires the banks to be responsible for their clients ie the grocery stores, who are cashing pay checks (and processing said checks thru their bank).
The CFPB is presently refining their range of proposed fines...
3. In addition many grocery stores sell general purpose reloadable prepaid cards that the FBI now considers to be A THREAT TO NATIONAL SECURITY.
This could lead to a damaging public relations fiasco not only by accidentally laundering money for terrorist organizations thru check cashing but loading those funds onto a simple piece of plastic accepted anywhere!
Walmart and Green Dot managed to sweep the Goose Creek, SC, terrorist news story under the carpet. Story; On I 95 North bound, South Carolina Police caught two suspected terrorists in a van headed to NYC with hundreds of untraceable Green Dot prepaid cards on board they had purchased at Walmart...
He and fellow student Youssef Megahed, 22, were arrested Aug. 4, 2007, and charged with illegally transporting explosive materials after a South Carolina deputy stopped them for speeding and found the materials in their trunk.
Prosecutors alluded to Megahed several times during the sentencing but never called him by name. Instead, they referred to him as Mohamed's "traveling companion." Megahed's trial has been postponed while the government appeals a judge's ruling to exclude certain evidence against him.
Former University of South Florida student Ahmed Mohamed received a maximum 15-year federal prison sentence Thursday for providing material support to terrorists.
Lead in your Community: Three Solutions to put your Grocery Store on top!
#1 Bank the "Bank Challenged". Don't just cash checks!
Presently 24% of the "Bank Challenged" (unbanked / underbanked) market (or 36 million people) uses Grocery Stores to cash their pay checks. Grocery Stores could now become destination bank branches and HELP BANK 150 million American's now considered to be "Bank Challenged" (unbanked / underbanked)*!
Great Public Relations, yes?
*FDIC Report Oct '14. See Summary numbers here, Fast Facts, hover over 150 million)
#2 Help Solve the "Bank Deserts"
Solve the “Bank Deserts” that have been created by the closing of underperforming high overhead traditional bank branches across America!
More great Public Relations!
*Banks have shut 1,826 branches since late 2008, and 93% of closings were in zip codes where the household income is below the national median, according to census and federal banking data compiled by Bloomberg Business News.
#3 Eliminate Expensive Prepaid Cards
General purpose prepaid cards are now obsolete.
Install the SWORD Mini Bank Branch Terminal in your Grocery Store today!
Fast, Efficient, Effective and US Treasury Compliant.