To protect consumers, the Manitoba government has set limits on the amount that can be charged for cashing a government cheque. That fee is $2 plus one per cent of the face value of the cheque, or $10, whichever is lower. For example, it can cost consumers up to $3 to cash a cheque written for $100 ($2 maximum cashing charge + 1% of $100 = $2.00 + $1.00 = $3).
There are only two exceptions:
- If a cheque is put on hold and cash is not provided, the maximum charge is $5, or the sum of $2 and one per cent of the cheque amount, whichever is less.
- If the consumer is required to spend 10 per cent or more of the cheque amount on goods or services in return for cashing it, no fee may be charged.
Government cheques include those issued by:
- Government of Canada (ex: employment insurance, income tax refunds)
- Province of Manitoba (ex: income assistance)
- Manitoba Housing and Renewal Corporation
- Manitoba Housing Authority
- Manitoba Public Insurance Corporation
- The Workers Compensation Board
What happens if there is a problem?
- A business or individual charging more than the limit is required to refund the entire charge.
- If a business or individual refuses to refund the overcharged fee, contact the Consumer Protection Office for assistance (see contact information below).
- A business that charges more than the maximum fee can be required to pay an administrative penalty ranging from $5,000 to $20,000.