Do you allow your check cashing customers to deposit checks payable to a business? For example, your customer is ABC Check Casher, and they deposit a check to CDF Construction LLC (endorsed on back by that business as well as your check casher customer).

No, we do not.

Not many (if any) banks will allow this as your bank can be on the hook for the funds.

OK, if you have a sole proprieatoship, should not be an issue. Other than that, the person depositing the check to their account may not be the only stockholder, therefore defrauding both the other stockholders, and the IRS for unreported income.

Example: Checkcasher Inc is our customer, and is depositing checks payable to Green Acres Landscaping (Green Acres endorses then Checkcasher endorses and deposits to Checkcasher acct at our bank). We have no idea who or what Green Acres is. The risk is too high in my mind, particularly with this being a high risk customer.

IMHO - What about the owners of Green Acres Landscaping? Let's assume (bad word to use, but what the heck) that Green Acres did my yard, and I gave a check to the worker Joey. Joey endorses the check "Green Acres" and heads home. The company, and IRS have the potential of being defrauded.

I was always told that the only thing a company could do with their check was depoeit it to their own account.

Many MSBs choose to accept the risk of negotiating checks payable to a business. That doesn't mean that a bank has to allow the MSB to be a customer of the bank or to accept checks payable to businesses for deposit into the MSB account.

So a checkcasher (whatever that is) has a check made payable to McDonald's; if it's "endorsed" they could deposit it into a Burger King checking account?

No, they deposit it into their own account.

the check cashing company (we'll call them Bill's Check Cashing and Payday Lender for the purpose of this exercise) accepts a check made payable to McDonald's and cashes it for the person presenting it, who, presumably is not a legal representative of McDonald's. Bill's Check Cashing and Payday Lender company then takes this check made payable to McDonald's and deposits into their bank account titled Bill's Check Cashing and Payday Lender, along with a host of other checks they have cashed for people.

should never be allowed