Title: American Epay Debit Card program
1P A Y C H E K P L U S !
Supplied by American EPAY
Payroll processing. Simple cost effective
2A Payroll Debit Card?
American Payroll Association estimates ½ of all
employers will investigate using payroll debit
cards in 2004. Many already use them
Payroll debit card users (m)
Bank Account
5.0
- A card connected to a bank account accepted at
ATMs POSs
4.0
3.0
Millions
2.0
1.0
-
2002
2003
2004
3PIN Signature debit cards
PAYCHEK PLUS!
PIN
Signature
Supplied by American EPAY
ATM
POS
many
most
Major retailers/grocers
yes
yes
Cash back
yes
yes
Card to card
yes
yes
FDIC insured
yes
yes
Hotels
no
yes
Rent cars
n
o
yes
Logo
no
yes
Cost
1.50/mo
4.95/mo
Time to issue/authorize/replace
almost
2 weeks
instant
- Personal Identification Number
4A universal payment tool
Cardholder Benefit
- No waiting in lines to pay check-cashing fees
- No bank account required for employee
- Privacy limited personal information required
to register - Access funds 24/7 from ATMs retail stores
- Send money (card to card) to relatives or
friends saving up to 70 - English Spanish 24 hour customer service
telephone Internet - Add money to card from other sources (2nd job,
govt. benefits, etc) - Rapid replacement of lost or stolen cards
- FDIC insured up to 100,000
5 Employer benefits
- Minimize or eliminate the cost and labor of paper
checks - Enables all employees to be paid via a direct
deposit - Eliminate paper wage statements with electronic
pay stubs - Employees can access their pay stub via telephone
or the Internet - Deliver termination pay, exception pay, bonus
pay, immediately anywhere - Minimize check counterfeiting fraud
- Minimize ESCHEAT compliance it is similar to
direct deposit. Funds are deemed delivered to
employees account
Payroll cost reduction simplification
6Debit cards lower costs simplifies payroll
Direct deposit
Debit card
Employee card account
1.50/mth
ACH
Payroll processing
Paper check
7Replace paper pay stubs electronically
- Cardholder pay stub information
- Web accessible/printable
- EPAY device pay stub print out
- Phone based IVR (interactive voice response)
No paper. No problem.
8Cardholder convenience Surcharge-free ATMs
STAR 241,000 ATMs 1,001,000 Retail
Coinstar Over 10,000 supermarket machines
Cirrus 820,000 ATMs
Pulse 250,000 ATMs 3,300,000 Retail
30,000
30,000 ATMs
9Check cashing savings
Cardholder Benefit
10Free clear access to net salaryA legal
requirement in some states
Valid for 1st transaction after payroll
11Free Clear access to funds
Cardholder Benefit
12Sending money to friends family savings
Cardholder Benefit
27.50
13Employer Cardholder Costs
Great value for employer and employees
14Employees like it
- Card had strongest appeal to full-time workers
earning less than 25K who currently dont have a
checking account. - Unbanked were particularly receptive, with 63
indicating a strong inclination to acquire the
card. - Of Hispanic workers surveyed, 72 indicated same
inclination
Payroll Cards vs. Direct Deposit Among a general
market, employees preferred payroll cards to
direct deposit 54 to 46 Among Hispanic
workers, difference was more pronounced. When
asked to choose, 64 preferred payroll cards,
compared to 36 preferring direct deposit.
Source Visa November, 2000 focus groups
15Move employees to debit cards/DDA with a soft
mandatory program
A Soft Mandatory program allowing existing
employees to opt-out is the most effective means
for e-payroll/cardholder uptake Mandatory
electronic payroll with PAYCHEK PLUS! card or
DDA is possible for new employees as a Condition
of employment
16E-Payroll program ready to rollout
Materials ready for production distribution
17Inside your employees card registration envelope
Hand out form. Employee fills in. Collect.
Input data to website. Go.
18Rolling out PAYCHEK PLUS!
4-6 weeks
Pre-active Cards Sent with opt out option
Card info Keyed-in
Payroll processed
Sign up Select of cards
1st Campaign
2nd campaign card use training
Follow up as needed
1st Information campaign
2nd Information Campaign
Card reg collected sent to corp office
Activates Card 800
Fills out application
Pre-active Cards campaign materials
Shipped
Set up Access pay stub
Ongoing customer card support
Corporate office
Field
Employee
EPAY
19Signature card Upgrade Option
- Within 4-6 weeks on PIN card, employee has option
of upgrading to PAYCHEK PLUS! Signature card
with a phone call - When employee accepts card upgrade
- Ability to use card in more places
- 14.95 one time sign-up fee
- 4.95 monthly charge
- Free Point Of Sale transactions
- Free Dollar Direct card
- Forgoes Free and Clear access privilege
- Employer takes no action
- System automatically routes salary to new card
20Discussion and Next Steps
P A Y C H E K P L U S !
Supplied by American EPAY