May 23, 2000

Will provide check cashing and payroll card services

NEW YORK, NY, May 23, 2000 -- The Check Cashers Association of New York, Inc. (CCANY) has won a competitive contract to provide check cashing services for New York City employees under the Office of Payroll Administration (OPA).

The award, announced by the OPA, links the more than 550 check cashers, through its PayNet payroll service network in the Tri-state area, and the OPA, effective June 23.

Under the agreement, CCANY’s PayNet will provide check cashing services and electronic access at its licensed locations where city employees can go to collect their pay. City employees, paid by OPA, will receive a 10% discount on the 1.4% check cashing fee permitted by state law, or 1.26%.

"This contract represents a great step forward in positioning our (PayNet) network as the reliable, premier provider of financial services in our neighborhoods," said Joseph Coleman, CCANY director who spearheaded the effort with the city government. "PayNet is now the official paymaster for the City of New York, and this agreement with the City will help enhance our credibility as we go forward to seek other business for our PayNet locations."

In addition to check cashing and debit access, all of the CCANY locations trading as the PayNet network, will provide a full range of ancillary services such as money orders, utility bill payments, wire transfers, purchase of pre-paid telephone cards and serves as the largest out-of-system vendor of tokens and MetroCards in New York City, among others. Created in 1944, and placed under the supervision of the New York State Banking Department, the licensed check cashing industry operates throughout New York City and in many other communities in New York State. According to the Banking Department, the industry cashed over 34 million checks with a face value of over $14 billion. At 1.4 percent, the check cashing fee in New York State is the lowest in the nation.

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Note:  Prior to May 2004, the Financial Service Centers of New York (FSCNY) was named the Check Cashers Association of New York (CCANY). Consequently, press releases and articles during that time period reflect the organization's CCANY name. 

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