Some of them still do; I was reliant on the local Giant Eagle to cash my paychecks for a while, and it went well after a couple week hold when I signed up so they could verify my employer (in a different state; consultancy, most of us are work-from-home types scattered over many states). Eventually I got direct deposit set up though and didn't need it any more.

IIRC the fee was a fixed $3 per check, not a percentage.