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Prepaid program benefits practices touted in paper
ST. PETERSBURG, Fla. (12/6/11)--Prepaid payroll programs offer growth opportunities for credit unions, according to a PSCU Financial Services white paper.

The white paper outlines the prepaid payroll market for consumer and employer programs.

"Prepaid payroll cards offer the highest transaction averages and longest life span of any prepaid debit card, said Ron Silvia, PSCU Financial Services vice president of debit, ATM and prepaid products. "This makes them extremely profitable for credit unions. A convenient, secure prepaid card also offers significant benefits to the underserved market by eliminating the need to pay high fees for check cashing services and the dangers of carrying cash."

All prepaid payroll programs offer cardholders the ability to have their paychecks directly deposited onto a reloadable card, which can be used at merchant locations and ATMs. These cards also offer the feature functionality of a debit card and the ability to continue using the card if the consumer leaves that employer.    

"Offering a prepaid payroll product gives the credit union the ability to attract unbanked or underbanked members or relatives of members who wouldn't normally qualify for regular payment products such as credit or debit cards," the white paper explained. "The limitations around conventional checking and savings accounts steer these members to a prepaid debit card, since it offers the same benefits as debit cards. Credit unions that supply their business segments with an employer prepaid payroll card program increase loyalty by providing a value-added service."

PSCU Financial Services' white paper outlines the tactics required to establish a successful payroll program aimed at either employers or consumers. The paper offers best practices that include regulations, anticipated operating margins, suggested program features and recommended marketing techniques. 

A credit union service organization, PSCU Financial Services offers its members processing options, such as full service to in-house pass-through processing for credit, debit and ATM transactions.
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