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Payroll card/debit card
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For the past several years, US corporations and financial
institutions have focused on converting America’s payrolls
from checks to direct deposit. The motivation has been
simple: money. Converting to an electronic system can
result in cost savings as high as 75 percent. Today,
over 55 percent of Americans are paid via direct deposit.
However, many employees, especially those without transactional
bank accounts, are unable to use direct deposit. They
represent a missed opportunity for financial institutions
and corporations.
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Providers of stored value products have leveraged their
platforms to develop payroll cards, which capture this
missed opportunity. Stored value programs can deliver
funds electronically to employees, commonly referred
to as the "unbanked," who do not have a transactional
bank account. Payrolls may be loaded onto these cards,
which are then used to access payroll funds through
ATM withdrawals, debit-card purchases and card drafts
(checks written on card funds).
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