Why do most NC license plate agencies only accept cash for notary fees? What you need to know

Most license plate agencies in North Carolina are privately owned, and owners decide which form of payment a customer can use to pay the feePhoto byTown Talks

When buying a vehicle in North Carolina or transferring ownership, you must have the title notarized at your local license plate agency.

These agencies have limits set by the state on notary service charges, but most only accept cash for these services, which raises questions for some residents.

Here's an in-depth look at why this is the case and where the notary fees go.

Decision-Making on Payment Methods

The North Carolina Division of Motor Vehicles (NCDMV) clarified that most LPAs are privately owned. The owners of these private LPAs decide which forms of payment they will accept for notary fees. This autonomy is why most LPAs have ATMs on site for customer convenience.

However, not all LPAs require cash-only payments. It is at the discretion of each LPA's owner, and some do not charge notary fees at all.

The two state-run offices, located in east Raleigh and Huntersville, do not enforce a cash-only policy for notary services.

Purpose and Use of Notary Fees

Notary fees collected at LPAs are not paid to the state. Instead, these fees go to the owners of the license plate agencies, who use the funds for various operational needs, including employee compensation CBS17 reported.

A report from the N.C. General Assembly highlights that LPAs, being private contractors, need to generate profit to sustain their businesses. Notary fees represent a significant revenue stream, as many transactions require notarization, and the fees collected directly from customers support the agencies' financial health.