From its inception in the 1930s, largely as a response to the banking practices of the Depression era and changes in employer payment practices, the financial service center industry has evolved to become the pivotal link to the payments system for millions of Americans. These people opt for convenience or reasons of personal preference to use our facilities instead of the traditional banking system.

Just as many consumers prefer the convenience of specialty stores to large department stores, so, too, do many consumers in selecting the convenience of financial service centers over banks. The convenience factor is supported by the fact that nearly 60 percent of FiSCA member customers maintain a savings or checking account at a bank or credit union. They prefer FiSCA members because of the nearby neighborhood locations and longer hours of operation, and the friendly service they find from our staffs.

Emergence of a National Association Representing the Check Cashing Industry

The growth of the industry was stimulated, in part, by the passage of the Bank Deregulation Act of 1980, which removed deposit rate ceilings and led to explicit pricing for bank deposit services. Faced with a new banking environment, consumers demanded increased convenience and lower costs in fulfilling their financial services needs. As a result, community-based check cashing centers which provide more convenient access to financial services became increasingly utilized. In 1987, the National Check Cashers Association (NaCCA) was established to represent the members of this growing industry. Increases in fees charged by traditional banks have caused many Americans to look for less costly, fee based options that do not require customers to maintain a large average daily balances.

To reflect the industry's growing role, members voted to change the organization's name to the Financial Service Centers of America (FiSCA), effective, January 1, 2000.

Today, FiSCA, with a membership of more than 5,000 individual financial service centers across the United States, is the industry’s leading voice on legislative, regulatory and business issues.

An Evolving Industry

Financial service center businesses range from small companies with one to three locations, to publicly traded national companies with hundreds of stores. Most states regulate the business in one form or another, often using the same regulatory bodies that oversee banks and credit unions. States regulators often set rates for fees that can be charged for certain services and the open market also functions to keep rates low for consumers.

The financial service center industry has grown in recent years as new products, such as deferred deposit services, prepaid debit cards and deposit acceptance services have grown in popularity among consumers. Additionally, new players are entering the market. Some banks and credit unions have opened stand alone check cashing operations. Major national retailers, such as Wal-Mart and 7-Eleven have launched financial service products that provide check cashing, money wiring and money order sales. All of this has created a more competitive marketplace and additional consumer options.

FiSCA believes that industry rates and fees are properly determined by local business and market conditions. The association opposes rate and fee regulation at the federal level, and works closely with local, state and federal government to ensure the integrity of the financial service center industry. FiSCA has been praised for its efforts to help implement the U.S. PATRIOT Act, which was put into place to fight money laundering that could be used to support terrorism activities. FiSCA and its members fully cooperate with initiatives aimed at protecting and enhancing consumer access to the financial services they need and want.

{For more about the Financial Service Centers of America, visit:  FiSCA Facts.}