| For years the paycheck has traditionally been a paper | | | | The employer benefits by saving money on printing |
| document issued by an employer to pay an employee | | | | checks and in many cases mailing them out. They |
| for services rendered. But in recent times, the physical | | | | reduce cost on the expensive check stock. They also |
| paycheck has been increasingly replaced by electronic | | | | don't have to worry about check fraud, due to a |
| direct deposit to bank accounts. | | | | check being lost or stolen. |
| In the past few years it has grown to the point that | | | | The prepaid debit card (also sometimes called payroll |
| many employers prefer direct deposits over the | | | | card, direct deposit card, or reloadable debit card) |
| expense of issuing paper checks. Many companies | | | | allows the employee 24 hr access to their funds by |
| are actively encouraging employees to sign up for | | | | using at any ATM machine. |
| direct deposit. | | | | And if they choose a service that provides the cards |
| But what is commonly unknown, and many employers | | | | with the Visa or Master Card logo it can also be used |
| are realizing, is that there are millions of people who for | | | | at point of purchase such as a grocery, department |
| various reasons are unable to obtain a bank account. | | | | stores, or anywhere they are accepted... which is |
| Many due to being reported to Chexsystems for a | | | | nearly everywhere. |
| previous bank account that was involuntarily closed | | | | Many of these services are even more flexible by |
| with a outstanding balance. | | | | allowing the individuals to use the card for paying bills |
| For these millions of people not having a checking | | | | by their online bill pay service, or electronically sending a |
| account creates difficulty and challenges with the | | | | check directly from their account. |
| simplest of things that most everyone else takes for | | | | Most of these payroll card accounts are FDIC-insured, |
| granted... like simply cashing a paycheck. | | | | but some are not. |
| For the employees that, for one reason or another, do | | | | One of the leaders in this prepaid personal money |
| not have access to a bank account there is a solution. | | | | account service is a company called Account Now. In |
| A non traditional bank account also called personal | | | | fact, they advertise and market themselves as the |
| money accounts. | | | | best alternative to a checking account. |
| Now, instead of the unbanked employee receiving a | | | | The account is FDIC insured. They provide a choice of |
| check... then having to go somewhere... to stand in line... | | | | receiving a Debit ATM card with either the Visa or |
| then paying up to a 5% to 10% fee at a check cashing | | | | Master Card logo. |
| service... the employee can have the direct deposit | | | | They have $0 upfront fees with Direct Deposit. And, it |
| loaded onto a debit card. | | | | can quickly be started as soon as your new account |
| Many of these cards come with the Visa or | | | | information is given to your employer. |
| MasterCard logo and are no different from any other | | | | They guarantee approval and the sign up process is |
| debit card. | | | | very fast and simple. |