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  •  Entire segments of the population are "unbankable" (2+ / 0-)
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    Puddytat, BusyinCA

    ...that is to say, they can't open a checking account.  They probably can't get a credit card, either.  

    The unbankable population is a cash cow for the check cashing industry.  Imagine having to give up 10% of your weekly paycheck to a check cashing store just to turn your pay into a liquid form. It's no surprise that the likes of Wal Mart are setting up kiosks in their stores to provide financial services (at a per transaction fee) to do things that banks would typically do for people who cannot open bank accounts because of credit issues and other things.  

    It also should come as no surprise that given the socio-demographic backgrounds of much of the unbankable (poor, minority) that some lawmakers see an opportunity to prevent even more people from getting the ID they will need to vote.  And, they can couch it in terms of cost reduction:  checks are the cheapest way to transfer money from one person to another.  Credit and Debit cards charge fees and require expensive terminals and dedicated data lines.  Cash requires an armored car to move it, and employees to count and recount it, band it, and move it again to the bank.  By contrast, one can steal a whole truckload of endorsed checks (for deposit only, State of ___ Department of motor vehicles, general account) and they're worthless, so security costs for checks are far lower.  


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