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Table of Contents

Lead Story

Translating tech for profit

News

Industry Update

UBC hopes to cash in with free program

Canadians' call for regulation rejected

Fire shuts down processor

Features

GS Advisory Board:
Vertical market virtues - Part II

Allied vendors speak

ISOMetrics:
History of payments technology

Selling Prepaid

Prepaid in brief

Incentive card usage reflects difficult economy

End-to-end payroll

Gift card legal perils - Part II

Views

The cards, they are a changin'

Patti Murphy
The Takoma Group

Mobile payments in the mainstream

Tim McWeeney
WAY Systems Inc.

Dude's got my money: What can I do?

Theodore F. Monroe
Attorney at Law

Education

Street SmartsSM:
Unexamined emotion, a pit bull that mangles business

Jon Perry and Vanessa Lang
888QuikRate.com

Understanding chargeback rules

Ken Musante
Moneris Solutions

Seven rules of 'celling'

Dale S. Laszig
DSL Direct LLC

Moving the needle on level 4 merchants

Joan Herbig
ControlScan

Use technology to tighten relationships, expand revenue

Shan Ethridge
TASQ Technology Inc.

Company Profile

SparkBase

New Products

Self-assessment assistance

CertifyPCI
Network Merchants Inc.

Pocket-sized terminal

way5000
Way Systems Inc.

Inspiration

Time for a change?

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

July 27, 2009  •  Issue 09:07:02

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SP
End-to-end payroll

The newest player in the growing payroll card marketplace is Springbok Services Inc. The Engle-wood, Colo.-based company launched enPay, a Visa Inc.-branded prepaid card. Springbok, which services the business community, not consumers, is offering the card to its roster of over 6,000 companies.

"A lot of our strategy right now is actually going after our current clients," said John Nail, Compensation Product Manager at Springbok.

"We service over 200 of the Fortune 500 businesses today. But we also work with small and medium-sized clients as well that also have this need and have a lot of unbanked or even credit challenged employees.

"So we're basically working toward providing a value-added service to all those existing clients, as well as any of our marketing partners that have clients out there that have this need."

Fulfilling service

The main need payroll cards address is the overhead costs of businesses issuing paper checks to employees. Typically, employers pay $2 per paper check per pay period, Nail said. That adds up to $50 per employee per year - a cost that electronic payroll eliminates, he added.

According to Nail, the enPay solution is easy for employers to set up without their having to change existing processes; employers only need to have direct deposit for employees with bank accounts to take advantage of enPay for workers without bank accounts. Springbok can integrate a program in seven to 10 days, he said.

From the employees' perspective, payroll cards offer savings, convenience and safety. Nail said unbanked employees are charged up to 5 or 6 percent of the face value of checks to have them cashed at check cashing businesses. For a $300 check, "that's about $15 per pay check just to get their funds," he said. "So it can be close to $500 to $600 a year that they're paying just in these fees."

Although a large percentage of employers have adopted direct deposit, that still leaves out their unbanked employees from participating in electronic payroll, Nail said. He cited statistics that state consumers spend over $1.5 billion annually in check cashing fees. "So there is a large population out there that can really benefit from this card product," he said.

While eliminating that cost, the enPay card offers:

Springbok Bill Pay is a "pay anyone model," Nail said. "You can not only electronically pay billers, but we can also send out checks to those billers. It's very easy to use. Very similar to a bank's bill pay model. So you can add payers that you want. You can do recurring payment. So [you have] all of this functionality that we are able to provide these cardholders that they would typically be able to get at a bank."

Competitive advantage

Springbok calls itself the "only end-to-end prepaid MasterCard and Visa solutions provider." It functions as program manager, processor, card producer and shipper.

"We do all that in-house," Nail said. For example, as program manager, Springbok works "directly with the banks to make sure that the card program is compliant and that everything is done satisfactorily," he added.

Typically, companies will keep some functions in-house and outsource others. But Nail illustrated the benefit of keeping all the functions under one roof.

Questions can be answered and problems solved quickly because the person with the answer might be right down the hall.

"The same thing with employers," he said. "They may need a rush card, and they have to have it the next day, no questions. We can go to fulfillment and get the card rushed, then out. A lot of times if you're working through a vendor, it's not quite that easy to do."


For more stories from SellingPrepaid E-Magazine, as well as breaking news and forums devoted to the prepaid sphere, please visit SellingPrePaid.com.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services