Corporate Presentation Mn 2009[1]


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  • This product not only appeals to “unbanked” employees, but employees with bank accounts that do not wish have their pay deposited into a traditional bank account.
  • -Vertical specifics include Retail, Staffing, QSR and Casual dining- refer to client results page (future appendix) - Proven implementation methodology maximizes efficiencies and results for fully launched paperless-pay campaigns
  • Details – First Data Case Study (Found on Brand Center) Each week The Holland Group, a human resources and processing management company with a staffing division based in Murfeesburo, Tennessee, distributes paychecks to 6000 temporary workers in as many as 50 different locations in seven states. The company knew it was spending an unacceptable amount of time and money getting those checks delivered. Fraudulent duplication of checks, lost checks and related problems kept one staff person at Holland busy problem-solving just this one business area. Where fraud occurred, some retail locations became reluctant to cash Holland paychecks—a situation that had the potential to affect the company’s reputation adversely. Beginning in 2003, the company started looking for a more efficient way to pay its workers. The challenge was to find a safer, more efficient alternative to paper paychecks and educate a large and changing workforce already accustomed to getting paid in a traditional form. For several months Holland reviewed a variety of solutions offered by various providers, including banks. For most of those vendors, paycard solutions were an ancillary part of their business. Holland wanted a strategic partner that specialized in payroll solutions and had a strong track record of successfully transitioning large workforces from paper paychecks to electronic paycards. They found that partner in First Data’s Money Network. In October 2005 all 6000 temporary and 200 permanent employees of The Holland Group switched from printed paychecks to one of the two paperless options, with 25% choosing a Money Network Paycard and 75% electing direct deposit.
  • Corporate Presentation Mn 2009[1]

    1. 1. Payroll Distribution Services In Partnership with K1 This document contains unpublished, confidential and proprietary information of First Data Corporation. You may not disclose, copy or use any part of these materials for any purpose without the express written consent of First Data Corporation. Larry Lokey First Data
    2. 2. Agenda <ul><li>Business Drivers </li></ul><ul><li>The Payroll Distribution Services – Pay Card and Money Network Check </li></ul><ul><li>The Advantages of First Data's Payroll Distribution Services </li></ul><ul><li>Working with First Data </li></ul><ul><li>Prepaid Key Successes </li></ul>
    3. 3. <ul><li>Business Drivers </li></ul>
    4. 4. First Data’s Prepaid Market Suite <ul><li>Reduces payroll expenses </li></ul><ul><li>Allows you to achieve 100% electronic pay </li></ul><ul><li>Improves payroll security and control </li></ul>Directed Gift Giving Consumer Need Open Loop Gift Cards Closed Loop Gift Cards Multi-Purse Gift Cards Employer Pay Cards & Check General Purpose Reloadable Cards Flexible Gift Giving Spending & Convenience Rewards Payroll Direct Deposit Bank Account Alternatives Spending Cards Loyalty Cards
    5. 5. Large “Underbanked” Market Looking for Alternatives <ul><li>CFSI – Underbanked Consumer Study 2008 </li></ul><ul><li>** Mercator Advisory Group, Inc. 2008 </li></ul>51.5M – 24% 54.9M – 25% Underbanked Percentage of U.S. Adult Population* (Numbers in Billions) The use of Payroll Cards is expanding as companies look to migrate to paperless pay in order to save costs associated with issuing paper checks
    6. 6. <ul><li>Payroll Distribution Services </li></ul>
    7. 7. Common Employer Issues “ I am looking for a payroll solution that enables compliance with complicated payroll laws” “ Issuing paper checks and the administration that goes along with it is extremely costly to my company” “ Direct depositing pay saves me money, but a large number of my employees don’t use it or don’t have bank accounts “ Many of my employees speak Spanish, so any service would need to be available in English and Spanish” “ I have a high-turnover, unbanked employee base – I need a payroll solution that saves me money and is easy to implement”
    8. 8. What is the First Data Payroll Distribution Solution? <ul><li>Employee choice: </li></ul><ul><li>Voluntary direct deposit to the financial institution of employees choice </li></ul><ul><li>-or- </li></ul><ul><li>The Money Network™ Service </li></ul><ul><li>Voluntary Money Network™ Card* </li></ul><ul><li>The Money Network™ Check: A paper check for full access to net pay without fees </li></ul><ul><ul><li>Employee generated as desired </li></ul></ul><ul><ul><li>Enables compliance with state payroll check requirements </li></ul></ul><ul><ul><li>Provides “pay to the penny” (100% access) to net pay at no fee </li></ul></ul><ul><ul><li>The Money Network check can be cashed for free in all 50 states </li></ul></ul>*Use of the card by the employee is optional Allows you to achieve 100% electronic pay thus reducing the costs associated with issuing paper checks
    9. 9. Achieving 100% Electronic Payments Providing What Everybody Wants / Needs *The Money Network™ Check is a negotiable instrument in all 50 states. Employer 100% Electronic Payment Employees with Bank Accounts Voluntarily elect direct deposit to personal bank Employees without Bank Accounts Voluntarily elect pay card or Money Network Checks*
    10. 10. Product Overview- Associate Benefits <ul><li>Free ATM Access – Over 35,000 surcharge free ATM locations: Allpoint® Network </li></ul><ul><li>Instant Issue or personalized cards – STAR® PIN Only, Visa®, Discover® or MasterCard® </li></ul><ul><li>Money Network™ Check –can be used for bill payment, cash-out to the penny, termination pay and for access to cash if the card is lost </li></ul><ul><li>Multiple Source Funding – offers Associates flexibility with Western Union re-load or second job ACH </li></ul><ul><li>Balance Alerts – Daily or weekly balance sent via text or email </li></ul><ul><li>Benefits for family - secondary card(s) option available </li></ul>
    11. 11. The First Data Payroll Distribution Solution Business Issue First Data Solution Reducing Payroll Expenses With First Data’s Payroll Distribution service you can reduce your overall payroll expenses Compliance The Money Network Service enables you to meet compliance requirements in all 50 states Achieve 100% Electronic Pay With First Data’s Payroll Distribution services, you can achieve 100% electronic pay across your organization even for exception pay, termination pay and employees without bank accounts Funding Standard ACH funding, web funding and same day funding via batch loader Instant Payment Corporate account with online web funding Bilingual Education of Employees Marketing materials and customer support provided in English and Spanish
    12. 12. Lower Your Payroll Costs Take advantage of First Data’s prepaid and payment expertise to lower your costs and add an employee benefit with a high perceived value Issue: Check Printing Check Distribution <ul><li>Check Administration </li></ul><ul><ul><li>Reconciliation </li></ul></ul><ul><ul><li>Lost / Stop Pay </li></ul></ul><ul><ul><li>Escheatment </li></ul></ul>Off Cycle / Term Pay Check Fraud Industry Estimate First Data Cost $0.69 $0.61 ………… $0.21 ……………………………………………… $0.10 $0.03 $0.0 $0.0 First Data Cost……. $0.0 .………………………………………………………. $0.0 $0.0
    13. 13. Payroll Distribution Services Helps Your Business Achieve 100% electronic pay across your organization Guarantee first pay with the instant issue product, including both the Money Network™ Check and Money Network Card. Reduce payroll production and distribution costs Ensures prompt distribution of pay on payday even in disaster situations. Improve payroll security and control Helps Your Employees Access their wages immediately on payday by either Money Network™ check or card . No-fee check cashing nationwide To pay for goods and services conveniently and safely in person or online Cash back at millions of participating retail locations – cash withdrawals at the largest surcharge free ATM network in the U.S. Guaranteed access to wages immediately on payday even if scheduled off, out on illness, vacation or in disaster situations 24/7 bilingual customer support (English/Spanish)
    14. 14. <ul><li>Working with First Data </li></ul>
    15. 15. Employee Awareness and Education First Data supports every aspect of the process <ul><li>Statement stuffers to announce the move to new pay options </li></ul><ul><li>Posters, table tents, take-ones available for work locations to communicate the benefits of the new pay program </li></ul><ul><li>Cardholder bi-lingual marketing packets for enrollment and training, include: </li></ul><ul><ul><li>Card carrier with fee schedule that includes an enrollment form to use, if needed </li></ul></ul><ul><ul><li>Easy to follow instructions for activating and setting up personal PIN numbers </li></ul></ul><ul><ul><li>Cardholder terms and conditions </li></ul></ul><ul><ul><li>Introduction to and instructions for using the card & check </li></ul></ul>How To Guides – English & Spanish Table Tents
    16. 16. Implementation and Training <ul><li>Implementation </li></ul><ul><ul><li>Approximately 4 Weeks (Fastrack can be implemented much more quickly) </li></ul></ul><ul><ul><li>Includes training, product inventory management, enrollment, funding and final production testing </li></ul></ul><ul><li>Training </li></ul><ul><ul><ul><ul><li>All training will be facilitated by First Data (field manager training, including product training, program administration, compliance, reporting) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Training needs will be mapped out during the early stage of implementation </li></ul></ul></ul></ul><ul><ul><li>Ongoing Client Support </li></ul></ul><ul><ul><li>Relationship Management Team will be assigned </li></ul></ul><ul><ul><li>Continued communication on product enhancements </li></ul></ul><ul><ul><li>Access to Client Service Teams </li></ul></ul><ul><ul><li>Customer Support </li></ul></ul><ul><ul><li>24/7 Toll-Free Operator Support (Spanish and English) </li></ul></ul>
    17. 17. <ul><li>Key Successes </li></ul>
    18. 18. Client Success with Payroll Services <ul><li>First Data provides payroll cards to over 1,000 companies </li></ul><ul><li>Retail: </li></ul><ul><ul><li>Best Buy – 100% first pay, opt-out </li></ul></ul><ul><ul><li>Michael’s Stores – 100% requirement </li></ul></ul><ul><ul><li>Zale’s – 100% requirement </li></ul></ul><ul><ul><li>Dillard’s – 90+% electronic </li></ul></ul><ul><ul><li>Abercrombie & Fitch – beginning 100% roll </li></ul></ul><ul><ul><li>American Eagle – 100% for term, elective roll </li></ul></ul><ul><ul><li>Gander Mountain – 100% electronic </li></ul></ul><ul><li>Food Service </li></ul><ul><ul><li>Texas Roadhouse – 90+% electronic </li></ul></ul><ul><ul><li>OSI, Inc. – Carraba’s 100%, Outback rolling opt-out </li></ul></ul><ul><ul><li>Ted’s Montana Grill – 100% electronic payroll and pay advice </li></ul></ul><ul><ul><li>Casper’s Inc. (largest McDonald’s franchise) – 100% electronic </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>RGIS – 100% electronic </li></ul></ul><ul><ul><li>McClane – 90+% electronic </li></ul></ul>
    19. 19. Success Story with First Data Providing Safe, Reliable, Paperless Payroll Solution <ul><li>The Holland Group </li></ul><ul><li>Challenge </li></ul><ul><li>Distributes 6,000 checks to 50 location in seven states </li></ul><ul><li>One full time staff member kept busy problem solving (Fraud, Lost Checks, etc) </li></ul><ul><li>Fraud lead some retail location to become reluctant to cash company checks </li></ul><ul><li>Solution </li></ul><ul><li>The company starting searching for a paperless solution that would save money and reduce fraud </li></ul><ul><li>Results </li></ul><ul><li>First Data’s Payroll solution was selected because it met their objectives and our outstanding level off customer service </li></ul><ul><li>100% electronic pay was achieved </li></ul>“ We could not be more pleased with how well this product is working for us. This is a sensitive area – getting people paid – and First Data has been a terrific strategic partner for us.” - Peggy Orrell, Director of Human Resources Outsourcing, The Holland Group