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‘Money, time and paper - you’ll save it all!‘ Are Prepaid Cards ‘the best thing since sliced b

Skylight Financial claim 'Money, time and paper - you'll save it all!' using the Skylight Paycard program. In their programme employees without a bank account are issued a Payroll Card and then employers use direct deposit to pay them. Skylight claim that employers's cost savings per cheque are $2.87 each time, and using Skylight's Online Wage Statement instead of a printed wage statement produces an additional $1.90 saving per wage statement.

Citi has implemented many prepaid card programmes, including:

  • a payroll programme for employees at Men's Wearhouse, USA  who did not have bank accounts. They were issued with a Citi Prepaid Payroll Card, a prepaid Visa card. The solution also provided electronic paystubs, compliance tools, and easy integration tools
  • Citi of Bogota, Columbia, USA delivered government subsidy payments using a prepaid card which, as well as saving costs and administration costs, also enhanced fraud detection, monitoring and fraud protection
  • London Borough of Lewisham in London, England used Citi's prepaid solution to pay a weekly allowance to 18 year-olds leaving its care to help them continue in education or look for employment. Recipients previously had to visit a council office once a week to collect their allowance in cash. This exposed staff and recipients to risk, required complex cash management procedures at the council, and discouraged budgetary management by recipients.

 


The real issue with the prepaid solutions available today for making payroll and benefits payments is not whether they are 'the best thing since sliced bread', rather it is when and where are they really effective? And when/where they are not, and what are the more appropriate alternatives?

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