Why do most NC license plate agencies only accept cash for notary fees? We asked NCDMV

If you plan on buying a vehicle in North Carolina, or transferring ownership to someone else, you’ll need to have the title notarized at your local license plate agency.

Though the state sets limits on how much license plate agencies can charge, cash is the only form of payment accepted for notary services at most locations.

A reader recently emailed The Charlotte Observer asking why that is.

“I’d love to know more about why the NC License plate agency only accepts cash for notary services,” the reader wrote. “I remember thinking it seemed odd when I got my license a few years ago and was reminded of it when a coworker recently got his. You get the feeling that someone’s just accepting cash under the table for being a notary. Plus you wonder who’s benefiting from the ATM that they keep in their lobby just for this purpose.”

We asked the N.C. Division of Motor Vehicles who decides how notary fees are paid, and what they’re used for. Here’s what they said.

Who decides how notary fees are paid?

Most license plate agencies in North Carolina are privately owned, and owners decide which form of payment a customer can use to pay notary fees, a spokesperson for NCDMV told The Charlotte Observer in an email.

That’s why most license plate agencies have ATMs inside, the spokesperson said.

“Most LPAs accept cash only for notary fees, but not all,” he added. “It is up to the individual (privately-operated) LPA. Some don’t even charge notary fees.”

The two state-run offices, in east Raleigh and Huntersville, do not require cash only.

What are notary fees used for?

Notary fees are not paid to the state, the spokesperson said. Instead, the owner of each license plate agency decides where the fees go.

For example, the owner of a license plate agency uses funds from notary fees for employee compensation, CBS17 reported.

“The majority of LPAs are private contractors who need to generate a profit to maintain their businesses,” according to a report from the N.C. General Assembly. “An important source of additional revenue is from notary fees: most transactions must be notarized and LPAs collect fees directly from customers.”

To find more information on locations of NC DMV agencies and license plate offices, go to ncdot.gov