The Benefits of a Paperless Paycard Program Paperless
The Benefits of a Paperless Paycard Program
Paperless Paycard Program • Corporate America is embracing paperless and the below benefits – Ideal for companies with a large population of unbanked employees – Paycards offer the cardholder a convenient safe place to store their hard-earned funds – Paycards issued under Visa can be loaded electronically by the employer every pay period – Companies producing a large number of paper checks can realize significant savings
Agenda • • • History of Payroll Cards Current Payroll Environment Compliance Environmental Impact Disaster Recovery/Business Continuity Implementation/Field Support/Training Cardholder Benefits Top Considerations Questions
History of Payroll Cards • Cumbersome enrollment • Hard to use, many were only PIN based, not accepted everywhere • Poor fee structures – – – No free ATM usage POS fees No OTC cash availability Load fees Maintenance fees Start up costs for launch
History of Payroll Cards • Not employee friendly • Did not meet all state laws (Compliance)! • Provided “value” for employer only – Allowed for the elimination of paper checks at employees expense. – Load fees and start up costs did not make the payroll card a slam dunk for cost savings • Online management toolboxes were not “friendly” and clumsy to use – Every lost card required changes to employee profile in the payroll system – Renewed cards required updates
Current Payroll Card Environment • Many programs will be VISA or Master. Card – Beware, not all are branded, some are PIN networks only – Some are branded Discover, not as friendly as VISA – Enhances the usage capabilities • • Accepted almost everywhere Online shopping capable – Signature and PIN usage – Provides fraud protections that come standard with these brands
Current Payroll Card Environment • Many programs will be VISA or Master. Card – Accounts are FDIC Insured – Protected by Regulation E – All of this is safer than carrying cash – Convenience checks – Some states even allow mandating of electronic pay, and these cards are an acceptable method
Current Payroll Card Environment • True Value for Employer and Employees – Employer can go paperless (when merged with a paystub / W-2 system) – Cheaper to pay electronically – Escheatment is no longer the responsibility of the employer – Ease of termination/exception pay
Current Payroll Card Environment – Enhanced productivity for employer – Employees can avoid fees associated with paper checks – Employees have more freedom
Current Payroll Card Environment • Ease of enrolling/maintaining employees on the program – Initial launch can be done with batches or one by one – On going enrollment can be linked to standard on-boarding process – A successful program will include the below: • • Provides free instant issue cards Activation generates a personalized card (free upgrade) which is mailed to the employee Both cards are linked to same account on platform All replacement cards are linked to same account (payroll never needs to update payroll system)
Current Payroll Card Environment • Fee structures – Employees should be able to use the cards with Minimal fees if you utilized properly (FREE pay to the penny access) • There are still plenty of programs out there that will take advantage of employees, BEWARE! – No start up fees or load fees for the employers – No start up, activation, or monthly fees for the employees • Some programs still have these fees
Current Payroll Card Environment Successful models include a free transaction every pay period which can be used as follows: – Free POS – One surcharge free ATM per pay period – One FREE bank teller transaction per pay period Does the paycard provider help train employees how to use the card correctly
Current Payroll Card Environment • Other key features to be concerned about – Customer Service – can make or break a program – Implementation – Technology capabilities (What can the provider deliver well? ) – Other associated programs
Compliance
Components • Important items to consider – – – – FDIC Insured Regulation E VISA/Master. Card Zero Liability PCI Level 1 Certified SSAE 16 Type II Audited Call Center CISP Certification State Regulations How does the provider advise you regarding compliance? What advice do they provide and is it for the life of the program? Legal Professional Associations (American Payroll Association, Association of Financial Professionals, American Staffing Association, etc. ) • Quarterly Newsletter • Monthly Tidbits • •
Environmental Impact
Corporate Responsibility • Many employers now have corporate responsibility initiatives – – – Reduce Paper Production/Delivery Reduce Waste Green Initiatives Reduce Energy Consumption Improve our Environment • Eliminating the paper our of your payroll process will contribute to corporate responsibility – Promoting 100% direct deposit fosters corporate responsibility!
Saving the Environment One Employee at a Time By switching to direct deposit an employee who is paid every two weeks will: • Save a pound of paper every year • Avoid the release of 4 gallons of waste water into the environment • Avoid the release of 1 pound of green house gasses into the atmosphere. This amount of greenhouse gases is equivalent to: - 4 miles not driven in your car - ½ square foot of forest preserved
Employee Cost Savings Check Cashing Service Basic Checking Account Global Cash Card $1, 042 $175 $75 *Estimated on an annual basis Source: Mercator Advisory Group, Pew Charitable Trust
Disaster Recovery
Promote Direct Deposit • How does your disaster recovery plan impact the delivery of pay to your employees? • Top 10 US States that have declared emergencies per FEMA include: TX, CA, OK, FL, WA, NY, OR, CO, AL, & NM. • USPS Saturday delivery is going away – impact? • Promoting direct deposit to a bank account or a paycard will ensure: – Employees are not at the mercy of the mail or other delivery methods when those methods are impacted by a hurricane, snow, or any inclement weather (i. e. Katrina, Sandy). – Instant funding can be done remotely (away from the impacted area) and not requiring employees to come into the office to get paid.
Implementation and Follow Up • • • Establish paycard timeline Set benchmarking and goals Determine “Go Live” date Establish paycard process and distribution Determine roll out plan of company Implement “pilot program” to determine best practices Create announcement materials and marketing plan Train managers and employees on efficient usage of the paycard Evaluate program Full company roll-out Continued education
Sample Materials Posters Check Stuffers Brochures Online Training Manual
Successful Adoption & Retention Methods • • • Field Support Team Customer Service orientation IVR tutorial Web conferences to train admin and employee staff Video & DVD library Frequent customer experience surveys Annual users conference Train the trainer Continued education Liberal fee reimbursement policy No rejection of direct deposit files In-house (US based) free Customer Service
Cardholder Benefits • • • Protected under Regulation E Visa/Master. Card Zero Liability Policy Cardholder balance is FDIC Insured NO more check cashing fees NO more standing in line or travel time NO more lost checks FREE cards for family members FREE card to card transfers FREE statements
Cardholder Benefits FREE transaction per pay period FREE monthly card maintenance FREE Signature Transactions FREE Cash Advance (if first transaction of pay period) FREE email, text message or voice message when your card is loaded • FREE multilingual “live” customer service 24 x 7 x 365 • FREE enrollment in a cash rewards program • • •
Cardholder Benefits • FREE Form 1040 -EZ Tax Return Preparation by Turbo. Tax an Intuit Company • FREE Card to Card transfers • Nearly 70, 000 Surcharge Free ATMs in the United States • FREE Online Bill Payment • Discounted Debt Resolution Program • Online Help • Mobile Banking
Cardholder Benefits • • Easy to Use Liberal Fee Reimbursement upon Initial Use Budgeting Tool Discount Health Plan Discount Entertainment Prepaid Legal Plan Roadside Assistance Plan
Food for Thought Top 10 Considerations when evaluating a paycard provider 1. 2. 3. 4. 5. What is the cost to implement a paycard program? What are the fees to the employees? Is the program easy to use, both by the employer and the employee? Is the program PCI level 1 & SSAE 16 Type II Audited certified? What is the level of customer service and is it outsourced (is the provider a reseller or a direct processor? ) 6. Does the paycard provider have an effective implementation program? 7. Is the paycard provider a specialist in paycards or is it an adjunct to their primary business? 8. What level of field support does the paycard provider provide? 9. Does the paycard supplier provide state of the art technology? 10. Is a disaster recovery program built into the paycard system?
Selecting a Partner • Customer Service • Technology • Implementation and Training
Questions
Contact • For more information please contact: George Mavrantzas Global Cash Card Director of Special Projects Phone: 904 -993 -0469 E-mail: gmavrantzas@globalcashcard. com Website: www. globalcashcard. com
Global Cash Card
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