American Epay Debit Card program

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P A Y C H E K P L U S !
Supplied by American EPAY
Payroll processing. Simple cost effective
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A 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
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PIN 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

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A 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
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Debit cards lower costs simplifies payroll
Direct deposit
Debit card
Employee card account
1.50/mth
ACH
Payroll processing
Paper check
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Replace 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.
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Cardholder 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
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Check cashing savings
Cardholder Benefit
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Free clear access to net salaryA legal
requirement in some states
Valid for 1st transaction after payroll
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Free Clear access to funds
Cardholder Benefit
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Sending money to friends family savings
Cardholder Benefit
27.50
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Employer Cardholder Costs

Great value for employer and employees
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Employees 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
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Move 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
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E-Payroll program ready to rollout
Materials ready for production distribution
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Inside your employees card registration envelope
Hand out form. Employee fills in. Collect.
Input data to website. Go.
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Rolling 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
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Signature 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

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Discussion and Next Steps
P A Y C H E K P L U S !
Supplied by American EPAY