What are the 2 R's of check cashing?

The two R's of check cashing are best represented by "Reason and recourse," which emphasizes the importance of verifying the authenticity and purpose of the check being cashed.

Understanding the "Reason" involves assessing whether the reason for cashing the check is legitimate and aligns with bank policies. This could include checking the details on the check and confirming that it is properly endorsed.

The “Recourse” aspect refers to the procedures and options available to the bank in case the check turns out to be fraudulent or if there are issues after the transaction, such as insufficient funds. By having a well-defined recourse process, banks can mitigate their risk and protect themselves as well as their clients from potential losses.

This dual focus ensures that bank tellers handle check cashing responsibly, reducing the risk of fraud and enhancing customer service. The other options, although relevant in different contexts, do not specifically capture the critical elements of ensuring legitimacy and addressing potential issues in check cashing.