Our tellers are being asked to convert on-us checks payable
to a business into bank money orders. the business is a check cashing or cash advance store such as check into cash.
the branch manager asked if the bank has to convert the check into a bank money order for the business or ask the person to deposit the item to his account at his bank?

See the Thread in the General Discussion section on "wrongful dishonor".

Before getting too hopped up over "wrongful dishonor" here, consider another angle. How does your bank know that the person who endorsed the checks has the authority to do so for the check cashing business? Or that the person bringing them has the authority to present them for payment? You don't.

So, I think your branch manager is on the right track suggesting that the checks should be presented through the normal routine of in-clearing via the business's own bank. At least that way you have that bank's warranty as to proper negotiation.

The better string for you to take a look at is the one on "cash back for business accounts." It has lots of arguments that apply equally to the check cashing for business question.

Thanks John! I needed that!
Steve Campo
campste@fgb.net