Article and banks are mistaken

Reader comment on: Banks Versus Walmart

Submitted by Todd (United States), Jul 11, 2014 19:30

My company serves alternative financial service centers all over the country. My clients are in business just like Walmart and all other businesses- to earn more than they spend. What you are not reporting on is that check cashing is a loss-leader to Walmart. They lose millions per year in check cashing- and they don't care since consumers will purchase goods in their stores. Alternative financial service centers such as check cashers are highly regulated in the states they operate, have significant brick and mortar cost, and as such, they don't cash checks to lose money. You may wish to commend Walmart's model, but considering they are providing the service at a loss, it is not fair to paint the picture that other industires are gouging consumers simply because Walmart does it for less. Something to keep in mind is that Walmart has destroyed a number of industries and many small merchants with such practices, by providing products well below cost. It's another discussion entirely, (it also relates to the non-enforcement of anti-trust in the United States), but something also worth thinking about when praising the actions of Walmart.

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