How do you handle this situation: Customer A has account with average balance of approx. 2,000. Each week Customer A brings in checks from other individuals that are unbanked. The checks are endorsed by Payee and Customer A . Customer takes cash back to individual. Do you charge a check cashing fee for this type of transaction? Thanks for input.

Since you are accepting the liability risk for up to three years for each check should the payee claim the endorsement is forged, I would encourage (require) Customer A to take this practice somewhere else. Any check cashing fee you charge would not cover the cost of time or risk.

and while you are at it, since the unbanked should be with him so you can witness the endorsement over to him, take the opportunity and open accounts for them

May want to think about why the person(s) are unbanked in the first place before putting out the welcome mat:)