Q: I opened a business in which most of my income is from cashing checks.  I have a fee to cash each check. Is this fee Riba (interest) or just a trasaction cost??

Answers:

• Yes, this ‘fee’ is riba. One cannot charge extra to merely cash the check.  This type of ‘cashing’ is an example of giving a loan.  In this scenario the cash you are  giving is in exchange of check. Until the check clears, it remains a loan, for you to charge extra would thus be riba. This type of transaction would be haram.
• By contrast, if you call the bank and they tell you that the person cashing the check has the funds, thereafter you cash it for the client; in such a scenario you may accept a transaction fee. In this second scenario you are not giving a loan, you are merely exchanging a check for cash. For your time, paperwork, etc you could charge a fee.

Allah Certainly Knows Best.