BACKGROUND

In the last decade, the payroll industry has experienced a tremendous increase in costs associated with processing checks. In an effort to save money on paper, printing and distribution costs, many employers are considering replacing traditional paychecks with pre-paid, re-loadable, debit cards. With the average cost of issuing a payroll check in the United States approximately $1.35 (not including mailing expenses), and the average cost to reissue a check approximately $12, payroll cards are a cost-effective alternative to printing and mailing payroll checks. Some recent statistics provided by the American Payroll Association validate this shift towards payroll cards:

• As much as 30% of the U.S. population does not have a bank account (American Payroll Assoc.)
• More than four million paychecks are lost or stolen each year (American Payroll Assoc.)
• Lost paycheck replacement costs are estimated to be $48 million annually (American Payroll Assoc.)
• Companies can save up to $1.25 per payment using electronic disbursement instead of checks (www.directdeposit.org)
• The chance of having a problem with a check is 20 times greater than with Direct Deposit (www.directdeposit.org)
• Studies show that employees may spend the equivalent of three work days each year going to the bank (www.directdeposit.org)

PAYROLL SOLUTIONPayroll Cards allow employees with or without a bank account to access their money 24 hours a day at over 1,000,000 ATM locations and tens of millions of Point-of-Sale locations worldwide. The payroll card is like having direct deposit without the bank account.The payroll card is re-loadable and allows an employer to deposit the value of an employee’s wages directly onto a prepaid card issued in the name of the employee. Employees utilizing their card can withdraw cash as needed from ATMs and use their card to shop wherever debit cards are accepted. Their card will be accepted in places such as supermarkets, gas stations, convenience stores, restaurants, and other retailers.

SUMMARY