Post Offices and the Unbanked in the US

Post offices are often proposed as a solution to providing access to cash. The US Center for Monetary and Financial Alternatives have argued that this is to fundamentally misunderstand the case of the unbanked.

The US Postal Service (USPS) has run a trial in four locations, allowing customers to transfer business and payroll cheques up to $500 to gift cards for a flat fee of $5.95. It is reported that no one has chosen to use the service in its first two months in the Bronx location. For the trial to be turned into a full-scale programme, Congress would have to pass new legislation.

Given that Walmart cashes cheques up to $1,000 for a fee of $4 and Check Cash Depot cashes cheques for a fee of 1%, $5 on a $500 cheque, perhaps this is not surprising.