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Quick Facts About FiSCA Frequently Asked Questions About FiSCA FiSCA is a national trade
association that represents 5,000 neighborhood financial service
centers. Headquartered in Hackensack, N.J., the association is the
industry’s leading voice on legislative, regulatory and business
issues. Although there are a few large
chain operations, most FiSCA members are local, neighborhood
organizations, who on average, operate between one and three stores. FiSCA members provide consumers
with a variety of services including check cashing; money orders;
access to ATMs; electronic bill payment services; deferred deposit
services; and electronic tax preparation and filing. FiSCA members
also give customers the means to make bank withdrawals and balance
inquiries; purchase public transportation fare tokens and receive
motor vehicle license plates and titles. It
is estimated that the check-cashing segment of the neighborhood
financial service industry processes 180 million checks annually at a
face value of $55 billion. Consumers who use financial
service centers are: ·
slightly younger than the general population ·
employed full-time (80%) ·
primarily lower to middle class in income ·
maintaining at least one traditional bank account (58%) An independent study completed
in September 2000 found that consumers use financial service centers
because of their convenient locations, longer hours, excellent
customer service, reasonable fees and safe environment. An April 2000 “Survey of
Non-Bank Financial Institutions” conducted for the United States
Department of the Treasury concluded that financial service centers
fill a consumer niche that many traditional banks ignore. To better serve their
customers, a number of FiSCA members are partnering with traditional
banks and credit unions to offer a complete line of financial
services. FiSCA members are committed to
a national Code of Conduct that outlines ethical standards designed to
protect customers. Frequently
Asked Questions About FiSCA Q:
What is FiSCA? A:
FiSCA is a national trade
association that serves neighborhood financial centers across the
United States. Representing 5,000 businesses, the association,
headquartered in Hackensack, N.J., is the industry’s leading voice
on legislative, regulatory and business issues that affect its members
and the rights of consumers to access basic financial services. Q:
What types of services do financial service centers provide? A:
Financial service centers provide communities with access to
check-cashing; money orders; money wire transfers; automatic teller
machines (ATMs); Social Security benefit payments; government salary
and retirement payments; public assistance benefits; electronic bill
payment services; deferred deposit services; and electronic tax
preparation and filing. FiSCA members also give customers the means to
make bank withdrawals and balance inquiries; purchase public
transportation fare tokens and receive motor vehicle license plates
and titles. Q:
How large is the financial service center industry? A:
FiSCA represents 5,000 financial service centers, of the more
than 10,000 currently in operation in the United States. According to
one study, it is estimated that the check-cashing segment of the
neighborhood financial service center industry processes 180 million
checks annually at a face value of $55 billion. Q:
Who uses financial service centers? A:
A survey of FiSCA members conducted in September 2000 revealed
the following about financial service center customers: §
Males and females almost equally use financial
service centers (53% Males/47% Females). §
Almost 50 percent of customers are single and have
never been married. §
Customers are employed in many different ways. Some
customers work in the service industry (24%) or are skilled (10%) or
unskilled (11%) craftspeople. An
additional 17 percent hold management, administrative of clerical
positions. §
Forty-eight percent of customers have household
incomes between $20K and $40K. Another
24 percent earn over $40K per year. §
Fifty-eight percent of those questioned in the
survey said they use check-cashing locations even though they have at
least one type of account at a traditional bank. Q:
Why do people choose to use financial service centers instead
of traditional banks? A:
Consumers rely on financial service centers because of their
convenient locations, longer hours, excellent customer service,
reasonable fees and safe environment. In addition, the September 2000
survey of FiSCA member’s customers revealed that: §
Eighty-one percent of consumers nationwide using
check-cashing locations ranked the overall quality of service received
as “excellent” or “very good.” §
Seventy-five percent of customers said their outlet
was “excellent” or “very good” in charging reasonable fees for
services. §
Ninety percent of customers felt very strongly that
FiSCA members offered products and services that they needed. An
April 2000 survey conducted for the United States Department of the
Treasury supports the findings of the independent FiSCA survey. The
Treasury’s survey report cited that the hours of operation,
convenient locations near public transportation and bilingual staff
capabilities allow financial service centers to cater to the needs of
their consumers. The services provided by FiSCA members fill a niche
that traditional banks have chosen not to fill. Although
58 percent of FiSCA member’s customers maintain at least one bank
account, the increasing cost of fees and minimum balance requirements
in checking and savings accounts makes the use of traditional banks
expensive for consumers. Financial service centers provide consumers
with an alternative, convenient and affordable way to manage
resources. Q:
What type of fee is charged for FiSCA member services? A:
The fees for FiSCA member services vary. To cash a check, for
instance, a consumer would pay a percentage of the face value of the
check. This percentage is usually between two and three percent. For
deferred deposit transactions, a consumer’s fee would be based on a
percentage of the total amount of money borrowed. Q:
What are deferred deposits? A:
Deferred deposit transactions are also known as payday loans.
If used correctly, they are a safe and convenient way to meet a
short-term cash emergency such as a car repair or medical need. A
deferred deposit is an advance against a customer’s future bank
account deposit. A
financial service center accepts a check drawn on an account and
“defers” the deposit of that check for a specified period of time,
usually two weeks. In
return for the deferment and risk that a financial service center
accepts, the customer is charged a service fee for the transaction.
This fee varies, but is typically around 15 percent of the advance. In addition to complying with
all federal and state regulations, FiSCA members are obligated to
uphold a Code of Professional Conduct. FiSCA wants to make sure that
its members provide full disclosure about services and associated fees
with consumers. Those businesses that do not follow this code of
Professional Conduct can have their FiSCA membership status revoked. FiSCA
members also work closely with elected officials and regulators on a
local, state and federal level to ensure the integrity of the
financial service center industry and protect consumer access. Q:
What changes are taking place with FiSCA and the financial
service center industry? A:
To enhance the services available at financial service centers,
FiSCA is strategically partnering with a number of traditional banks
and credit unions to give customers access to a complete line of
financial capabilities. Q:
Where can I get more information on FiSCA and financial service
centers? A:
For more information about FiSCA and its members, please visit
other pages on this website (www.fisca.org),
call its national headquarters at |
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