To protect consumers, the Manitoba government has set limits on the amount that can be charged for cashing a government cheque. That fee is $3, plus two per cent of the face value of the cheque. As an example, on a $500 cheque, the maximum that can be charged is $3, plus two percent of $500, which equals $10, for a total of $13.
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 $3 and two 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
If you've been charged more than the maximum fee allowed, contact the Consumer Protection Office. Businesses that overcharge will be required to refund the overcharged fee, and the business may incur a substantial penalty, ranging from $5,000 to $20,000.