Pay card latest product offering from CBIZ Payroll
CBIZ Payroll has initiated a new way for clients´ employees to receive their pay – and spend their money.
In partnership with Global Cash Card™, based in Carlsbad, CA, CBIZ Payroll has added to its product line the Global Cash Card™, a pay card that acts as both a bank for direct deposit and a debit card.The new product, rolled out in late December 2004, offers CBIZ Payroll clients and prospects the opportunity to move toward paperless payroll, which can help them reduce payroll processing costs; helps participating client employees find new convenience in managing their money; and enables CBIZ Payroll to become increasingly competitive in the payroll industry.
"Pay cards are becoming more commonplace in our market," says Aaron Hylton, CBIZ Payroll implementation manager (Roanoke, VA). "A number of our larger competitors sell them. And the increase in pay/debit card use among consumers has grown, so this expands the client base that we can sell to. It´s also one of the key pieces to achieving electronic — or paperless — payroll."
In deciding to offer the pay card, CBIZ Payroll received feedback from clients and payroll sales reps, who saw a need for the card. CBIZ Payroll researched eight pay card vendors before making its selection. "Global Cash Card™ won for its services and features," says Hylton.
The pay card allows for direct deposit of employees´ pay, eliminating the need for paper checks. The card is sold in conjunction with Payroll´s processing services; and once employers place an order with CBIZ Payroll to offer the card, Payroll trains the employer on how to set up direct deposit based on data received by Global Cash Card™. From there, Global Cash Card™ works with the client to enroll employees in the program, after which the client sets up direct deposit within the company´s payroll system. Global Cash Card™ works with First-Citizens Bank & Trust Company, also in California, to set up the pay card direct deposit accounts. The arrangement means that even employees who do not have an existing banking relationship can participate and utilize the pay cards.
From there, the card provides a host of benefits. Aside from the convenience of direct deposit, the cardholder can receive three associated Global Cash Card´s and enjoy card-to-card transfer of funds while maintaining control over any associated cards used by others. Hylton notes some key markets that can benefit from these features, among them employees who need to move money when transferring money internationally (i.e, to relatives in other countries) as well as parents with college-age children.
"The parents may not want their college kids to use credit cards," explains Hylton. "The pay card enables them to monitor the amount of money on the card. You can never spend more than what´s been deposited into the account, so you´re never overdrawn."
As an example of the card´s versatility, Hylton notes a school district in California that has set up the card to serve as a student ID. The card includes the student´s photo and also acts as a meal ticket - a predetermined amount of money is purchased and added to the card, which is then scanned and debited each time the student buys lunch in the school cafeteria. Similarly, the students can buy schoolbooks with the card.
More traditional uses of the card exist, as well, including the ability for the cardholder to make purchases at point-of-sale locations throughout the United States — and receive available cash back. Discounts on hotels, vacation packages, cruises, airfare and car rentals may also be available. In addition, a new feature of the card is the ability to use it as a long distance phone card. Hylton notes that this feature was unmatched by the other competitors in the industry.
The card is tied to a PIN number to provide added security, and secure, online account access is available.
CBIZ Payroll anticipates reaping the revenue benefits of the pay card gradually, including residual benefits. In addition to receiving a percentage of the fee charged to activate the card, CBIZ Payroll will receive a percentage of any transaction fee incurred when the card is used.
"And even if the employee moves on from the original employer, we will still get fees from their use of the card," says Hylton, adding, "I think if you can hit your current client base quickly, this can build."