DICKSON CITY, Pa. Americans say they are fed up with banks. They are protesting on Wall Street and raising a ruckus over outsize fees. Now there is a surprising beneficiary: Wal-Mart Stores Inc.
Geoffrey Cardone, a 26-year-old factory worker, said he dumped his bank account because he felt like he was being nickeled and dimed by fees. His new payday ritual includes a trip to the Walmart here in the mountains of northeastern Pennsylvania.
"It's cheaper," said Cardone, who was charged a flat fee of $3 to cash his paycheck. Many check-cashing stores keep a percentage of the check, which tends to be higher.
The Walmart here has a teller in a brightly painted Money Center near the entrance, like more than 1,000 other Walmarts across the country. Customers can cash work and government checks, pay bills, wire money overseas or load money on to a prepaid debit card.
At Walmarts without dedicated Money Centers, the financial services are available at the customer service desk or at kiosks.
Four years ago, Wal-Mart abandoned its long-sought plans to obtain a federal bank charter amid opposition from the banking industry and lawmakers, who feared the huge retailer would drive small bankers out of business and potentially conflate its banking and retail operations.
Ever since, Wal-Mart has quietly built up a la carte financial services, becoming a force among the unbanked and "unhappily banked," as one Wal-Mart executive put it.
Even before the recent outcry against banks, the services had become popular with strapped customers, many of whom never had a bank account and found the services more affordable than traditional check-cashing operations. Now newcomers to the ranks of the banking disaffected are helping to swell the numbers, Wal-Mart officials said.
The run from banks is happening elsewhere, too. In the past four weeks, as anger over debit-card fees festered, more than 650,000 customers signed up for credit unions, according to the Credit Union National Association.
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