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As seen in the Washington Post, the Treasury Department recently announced that most government benefits will be paid by direct deposit by 2013 to help cut costs. Most of these savings will come from the benefits sent out by the Social Security Administration, Department of Veterans Affairs, Railroad Retirement Board and Office of Personnel Management.

This will eliminate around 136 million paper checks and help save money on both paper and postage costs. This will save the government about $48 million dollars in postage costs. Best of all, this policy change will save taxpayers $303 million dollars in the first five years.

By making this switch to new technology, the government is allowing the payments to be delivered in a safe, convenient and secure method. Electronic transfers such as these ensure that payments will be received when people are affected by a natural disaster. These government achieved benefits are those that an employer may achieve by instituting a pay card program. The roll out of a program such as rapid! PayCard will save an employer time and money, improve efficiency, business continuity and disaster recovery and help save the environment as well. Go to rapidpaycard.com to use our cost savings calculator and see how much your company may save!

Go to SUSTAINABILITY AND ePAYROLL SAVINGS CALCULATOR

Pay cards can help save your company money as well as help it run smoothly, but there are certain steps that need to be taken to make sure that your pay card program meets your company’s goals.

1.Senior management must make sure that pay card implementation is a priority. Company wide collaboration makes for fewer obstacles.

2.A company needs to have a good deployment strategy. Company wide implementation of pay cards for employees without direct deposit will ensure company efficiency and savings.


3.Timing and resources could mean everything during implementation. Detailed timelines can help the implementation process run smoothly.

4.Your ability to issue and deliver cards should be easy and immediate. The pay card provider should be able to provide your department with easy to understand directions and instructions for enrollment.


5.Client training is essential. The pay card program will be weak without strong training and communication.

Following these five steps will help your pay card implementation process be completed without hassle.

Due to the recent growth of the pay card industry in the past decade, not everyone is aware of what exactly a pay card is or why it is better than a paper check. A pay card is a pre-paid debit card that employers provide to employees that do not have bank account so that the employer can pay all employees electronically, via direct deposit.  It is not a credit card and requires no credit check or checking account.

There are two different types of pay cards:

Branded-(Visa, MasterCard, Discover)   

- ATM withdrawal                                                   
- PIN POS                                                            
- PIN POS Cash back                                            
- Credit (Signature)

Pin based-(Non-branded/ATM card)

- ATM withdrawal                                                 
- PIN POS                                                            
- PIN POS Cash back                                           
                                                      
The credit feature on branded pay cards allows the cardholder a feeling of dignity by letting them do things a normal pin based pay card would not, such as shop online, pay at a restaurant, rent a hotel or pay your bills over the telephone.
 
Pay cards save employers and employees money. Companies save money because the price of loading a pay card is cheaper than paying with a paper check. Pay cards eliminate all overdraft fees, a fee that is usually 35 dollars. They will also save money in gas by no longer having to drive to pick up and cash their checks. This gives them a feeling of security.

Pay cards do not only help to save money, they help to save the environment. By eliminating paper check companies are helping to save trees, fuel and energy, conserve water and reduce green house gases.

The following items are the conveniences that come along with a pay card:

•Cash back available when using card

•Worldwide locations to access money

•Quality providers eliminate overdraft fees

•Easy bill pay with the card

•Easy transfer of money from card to any bank

•Companion card available for family member use

•Text Message Alerts

Identity theft occurs when someone uses your personal information, like your name, Social Security number or credit card number, without your permission, to commit fraud or other crimes.

Identity theft can happen in various ways, such as:

1.Dumpster Diving
    -They rummage through trash looking for bills or other paper with your personal information on it.

2.Phishing
    -They pretend to be financial institutions or companies and send spam or pop-up messages to get you to reveal your personal information.

3.Changing Your Address
    -They divert your billing statements to another location by completing a change of address form.

4.Old-Fashioned Stealing
    -They steal wallets and purses; mail, including bank and credit card statements: pre-approved credit offers; and new checks or tax information. They steal personnel records, or bribe employees who have access to your information.

5.Pre-texting
    -They use false pretenses to obtain your personal information from financial institutions, telephone companies and other sources.

                            (Federal Trade Commission 2009)

Pay cards help protect your identity

-->    Pay cards are not linked to your credit bureau information or any of your other accounts. This helps minimize the risk of personal data loss.   

-->    If pay cards are lost or stolen, your money is protected by FDIC insurance.

-->    Monthly statements are available online and not mailed to your home unless requested, which helps protect your name, your address and account information from mail fraud.

If a disaster hit now, would your company be ready? Disasters range from hurricanes and floods to earthquakes and tornados. The recent Nashville flood is an example of a natural disaster that affects companies normal routines, including paying their employees. When a company uses a pay card to pay their employees electronically, there is one less problem in the middle of a disaster.

The key to successful disaster recovery is to have a detailed plan well before a disaster happens. Safety and recovery speed are essential when a disaster hits. Therefore, companies should know what disasters are most likely to affect them and their employees, and have a plan for each.

Here are five quick tips to help protect your company in a disaster:

1.      Copy all important documents and store them in a

safety deposit box at a bank in another state.

2.     Make sure everything at your company such as

insurance premiums; mortgage and other

important bills are paid automatically to eliminate

problems if you become unable to operate for a

significant time.

3.     Create emergency check lists for the company and

every department, including a communication plan.

4. Designate an out of town phone number

employees can call to leave an “I am ok” message.

5. Provide your employees with emergency checklist

for their personal lives. The sooner your employees

are safe the quicker you can get back to normal

business.

Disasters are scary and stressful enough; employees should not have to worry about how they are going to be paid. Companies should encourage direct deposit by explaining how it will ensure money is in their account even if they cannot be located or the office is inaccessible. Companies should also provide a pay card option for their unbanked employees, who represent 20% of the U.S. workforce. The rapid! PayCard provides an instant funding method, which allows money to be transferred immediately to any card account. This tool is helpful in a disaster scenario for per diem pay, advances and other emergency and expense payments.

Direct deposit and pay cards are more than just helpful in a disaster; they can also save your company money. Direct deposit can save between $2.00 - $10.00 for every check issued. If 100 paper checks are issued every pay day, your company would save on average $200.00 - $1000.00! That is up to $52,000 a year by switching from paper checks to pay cards and direct deposit. The rapid! PayCard requires no credit check and offers employees a safe way to use debit cards without the risk of overdraft fees.

Recent news articles have warned consumers to be aware of gift cards and reloadable debit cards, citing excessive and/or hidden fees. As employers attempt to implement pay card programs, these warnings cause employee concerns toward what otherwise would be a smooth and successful campaign to move all employees to e-payroll. Much of the misunderstanding is due to the fact that most articles don’t offer much (if any) differentiation between the cards.

There are major advantages to Payroll Debit Cards over Gift and General Purpose Reloadable cards. The most significant protections are from state and federal government laws in place to regulate Payroll cards and protect employees.

Payroll cards are typically:

·         Regulation E compliant

·         FDIC Insured

·         Protected by VISA® zero fraud and liability protection

Regulation E

Regulation E protections provide advantages for payroll debit cards. Only payroll debit cards are subject to Regulation E, which includes many important customer protections.

Such as:

·         Fraudulent charge protections

·         Dispute-resolution procedures.

·         Periodic account statements.

·         All terms, conditions, and fees to be clearly disclosed.

FDIC Protection

Payroll pay cards are Federal Deposit Insurance Corporation (FDIC) insured for up to $250,000 per account (employee).

Visa Protection (branded only)

The VISA® Zero Liability policy provides you with protection against fraud. Should someone steal your VISA® card number, you pay nothing for their fraudulent activity. This policy applies to any item purchased with your VISA® card or card number including purchases made through the Internet.

Other Advantages

·         Lost or stolen payroll cards can be quickly and easily replaced, without loss of funds.

·         There is no need to go to the workplace to receive a paycheck.

Pay cards provide employees many advantages over General Purpose Reloadable Debit cards. They are more secure, less expensive, and easier to use and load. Unbanked and underbanked individuals choose to use General Purpose Reloadable Debit cards to gain some of the advantages of traditional bank accounts, but fear high fees and overdrafts. These cards provide an entryway into traditional banking services but lack FDIC insurance and enhance federal and state protections. These individuals would be better served by opting for a pay card provided by their employer that offers superior value and security, like the rapid! PayCard.

rapid! PayCard would like to thank everyone who has implemented electronic payment of wages.  Since the first earth day 40 years ago, the United States has taken on major environmental initiatives.  Shortly after the first earth day a number of important pieces of environmental legislation were passed, including the Clean Air, Water Quality Improvement, Endangered Species, Toxic Substances Control and Surface Mining Control and Reclamation Acts.

Companies that have switched over to an electronic payment of wages have helped reduce the consumption of paper, C02 and water traditionally used in creating paper checks.

Per employee they have on average saved:

• A pound of paper per year
• Avoid the release of 4 gallons of wastewater into the environment
• Avoid the release of 1 pound of greenhouse gases into the atmosphere

Small changes can make a big difference for our planet.

 Thank you,

        rapid! PayCard Team

There are currently over 22 million Americans who still receive paper checks on pay day. This adds up to over 8 million pounds of paper being used and 25 million pounds of greenhouse gases being produced. Think about what goes into issuing a paper check; first the amount of paper even a relatively small company with only 300 employees uses is over 120 pounds of paper to issue paper checks every year. If you pay your employees weekly you’re using almost 250 pounds of paper.

One of the main reasons why employees receive paper checks is because they do not have a traditional bank account where their pay checks can be direct deposited. (For more information on this follow this link- http://www.extension.umn.edu/distribution/familydevelopment/components/8434-Unbanked.pdf)

rapid! PayCard provides an ePayroll solution that allows you to convert all your employees who receive a paper check to direct deposit. An effective pay card program will help your company save money and increase environment sustainability by minimizing your use of paper and other resources.

Not only does your company receive the benefit of the rapid! PayCard program, your employees get a product that provides security, convenience and restores dignity to their financial lives.

The American Payroll Association and rapid! PayCard are part of an initiative to allow employers to eliminate the use of paper paychecks nationwide. Currently, employers can go completely paperless in about 20 states. We're tackling the rest, state by state, and we need your help! We're posting sample letters preaddressed to the state officials in those states that currently keep employers from enjoying a paperless payroll. Please download a copy of the letter, personalize it, and send it on your company letterhead.

The center of the request is to allow employers to mandate direct deposit. Where employees do not provide their bank account information, employers should be able to provide pay cards instead of paychecks. It's that simple. Please join us.

Thank you,

     rapid! PayCard team

Sample Letters:

Alaska.docx

Arizona.doc

Arkansas.docx

Hawaii.docx

Illinois.docx

Rhode Island.docx

Tennessee.docx

Utah.docx

For more information on getting your state to go green, check out the American Payroll Association government regulation page. (http://www.americanpayroll.org/government/)

You see it in the news almost nightly, more and more teens are raking up credit card debt, in fact nearly 80% of all graduating college seniors have credit card debit before they even have a job!  But this problem starts even before the freshman year of college; in fact the number of high school students who have or use credit cards is rapidly increasing as well.

The problem with teens and credit cards is that most are not mature enough to fully understand what they are getting themselves involved with and their parents believe by cosigning a credit card for them, they will learn financial responsibility. The average teenaged credit card user only makes the minimum monthly payment leading to increased interest payments.  The average senior graduating from college has over $4000 in credit card debt.

Don’t worry there is a better solution. Pay cards, such as the rapid! PayCard, are great tools to help teach financial responsibility.  With the rapid! PayCard, cardholders have the versatility of a bank debit card without the threat of an overdraft fee. Cardholders are also able to start an interest earning savings account, and are able to transfer funds from there card to any bank account.  Best of all cardholders receive all funds loaded onto their card immediately and at no cost to them. Paychecks, student refund checks, and any payment that can be direct deposited can be loaded onto the card.

Before you  sign up for the first credit card letter you find in your mailbox, look around and see what alternatives are out there, then make the choice that is best for your student’s needs.

All companies can benefit by implementing a pay card program.  However, there are four key issues you need to keep in mind before you put a payroll card system in place.  These are compliance, cost, employee adoption, and training.

Compliance

If you're thinking about implementing a payroll card system you must be informed about state laws.  State laws vary greatly and are rapidly changing.  Employers need to be aware of the legislation in every state that they have employees.  Be sure to select a pay card provider that is compliant in all 50 states.

Cost

As a baseline the pay card program should be free to the employer and cost the employee nothing to enroll.  The employee should receive at least 1 free way to access their funds, to the penny, per pay period.  Fees vary across all pay card providers, make sure to receive a complete list of cardholder fees before making your pay card provider selection.

Employee Adoption

We believe that the most critical element of any pay card program is employee satisfaction. While there will always be some resistance to change, we have developed several approaches that can be tailored to individual employer’s workforce to help convince employees of the value of the pay card benefit.  Once Employees learn about the advantages of a pay card (lower cost, the convenience of ATMs and POS terminal use, and safer access to their funds) it is really an easy sell!  The "resistance" to change expressed by some workers can best be overcome by a fully supported pay card implementation.

 Training

Our innovative training process is a key success factor for your pay card program.  We provide complete training and support throughout your entire organization.  Acceptance of any pay card program is dependent on the effective communication of the value of the program for the company and its employees.  The rapid! PayCard team will demonstrate the complete set of available tools that we utilize to train your team.  

“rapid! PayCard provides a completely different value proposition for our clients compared to all other paycard companies that focus primarily on technology and card features.  We provide the most comprehensive paycard technology platform as the foundation and then build real value for our clients with the successful adoption of the paycard into their organization through comprehensive, marketing, training and support.  Where most paycard companies end their efforts, with system access and cardstock, we are just beginning to provide the high touch service that you require to achieve your goals.”  Chris Ruppel, CEO rapid! PayCard   

rapid! PayCard provides:

      -Full compliance support for the life of the program

      -Free for the employer

      -Low cost for your employees

      -Full training and support