First Data Payroll Services.06..09


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First Data Payroll Services.06..09

  1. 1. Money Network TM Payroll Distribution Services Through K1 Financial Group
  2. 2. Agenda <ul><li>Why 100% Electronic Payroll </li></ul><ul><li>Employee Benefits </li></ul><ul><li>Enrollment & Funding </li></ul><ul><li>Compliance </li></ul><ul><li>Money Network Differentiators </li></ul><ul><li>Next Steps </li></ul>
  3. 3. Why 100 % Electronic Payroll? <ul><li>Reduce Costs </li></ul><ul><ul><li>Printing, Distribution & Administrative </li></ul></ul><ul><ul><li>Stop Payments, Re-Issues, Positive Pay Fees </li></ul></ul><ul><li>Eliminate Check Fraud </li></ul><ul><li>Reduce store management time spent on check issues </li></ul><ul><li>Efficiency for “on the spot” payments </li></ul><ul><li>Provide electronic banking advantages for employees who do not currently have or use a bank account </li></ul><ul><li>Disaster Recovery Advantages </li></ul><ul><li>Eliminate Escheatment administration </li></ul><ul><li>No new technology required </li></ul>Achieve 100% Paperless Pay
  4. 4. Interesting Facts & Industry Drivers <ul><li>The Un-banked American Worker </li></ul><ul><ul><li>25 - 35 million (17%-23%) exist – Pew Research Center </li></ul></ul><ul><ul><li>Spend $9 Billion annually on check cashing fees – Brookings Institute </li></ul></ul><ul><ul><li>Spends approximately $40 / month on check cashing, money order, & transfer fees – McKinsey Quarterly </li></ul></ul><ul><ul><li>A person taking a payday loan for $300 ends up paying $800 – Non Profit Center for Responsible Lending </li></ul></ul><ul><li>Employer Issues </li></ul><ul><ul><li>The approximate cost to process a payroll check is $2.20– US Comptroller of the Currency </li></ul></ul><ul><ul><li>4 Million payroll checks are lost or stolen each year – American Payroll Association </li></ul></ul><ul><ul><li>Industry studies indicate that employee's can spend the equivalent of three workdays each year traveling to a bank or check cashier – US Cardsource </li></ul></ul><ul><ul><li>Employers producing 10,000 payroll checks / advices per month can save 7,000 pounds of paper, 65,000 gallons of wastewater, 2,000 gallons of gasoline, and nearly 1,000 trees annually - </li></ul></ul>
  5. 5. The Money Network Solution <ul><li>VISA Signature, PIN Debit, & Check Options </li></ul><ul><li>Utilizes current ACH / Direct Deposit File </li></ul><ul><li>Applications </li></ul><ul><ul><li>Off Cycle & Term Pay, </li></ul></ul><ul><ul><li>Expense Reimbursement & Per Diems </li></ul></ul><ul><li>Provides compliance for state payroll check cashing regulations </li></ul><ul><li>Increases Direct Deposit Participation </li></ul>
  6. 6. Money Network - Industry Experience <ul><li>First to Market : 1994 </li></ul><ul><li>Number of Clients: = 1,300+ </li></ul><ul><li>Number of PayCards issued: = 1 Million </li></ul><ul><li>Number of Transactions: 2007 = 14.4 Million </li></ul><ul><li>Money Moved: 2007 = $1.3 billion </li></ul>
  7. 7. Employees Benefits… <ul><li>Immediate access to wages on payday </li></ul><ul><li>No more check cashing fees </li></ul><ul><li>Eliminating the need to buy money orders to pay bills </li></ul><ul><li>Access to the Money Network Check </li></ul><ul><ul><li>No-fee check cashing at 4,300+ retail locations </li></ul></ul><ul><ul><li>Unlimited check writing to pay bills </li></ul></ul><ul><li>Surcharge free ATM withdrawals at 37,000+ locations </li></ul><ul><li>VISA Branded acceptance </li></ul><ul><ul><li>Online & Telephone Purchases </li></ul></ul><ul><ul><li>Online Bill Pay </li></ul></ul><ul><ul><li>Secondary card with VISA portable </li></ul></ul><ul><ul><li>Unlimited Free signature POS purchases </li></ul></ul><ul><li>Money transfer via Orlandi Valuta to Latin America and Mexico </li></ul>
  8. 8. Cardholder Access To Funds <ul><li>Money Network Check </li></ul><ul><li>“ Pay to the Penny” = 100% access </li></ul><ul><li>Paper Negotiable Document </li></ul><ul><li>Self Issued “bounce-less” pay check </li></ul><ul><li>ATM </li></ul><ul><li>Accepted at all ATM’s </li></ul><ul><li>37k+ surcharge free locations – Allpoint Network </li></ul><ul><li>Bank Over The Counter </li></ul><ul><li>VISA Signature Cash Advance = 100%access </li></ul><ul><li>POS Debit </li></ul><ul><li>Accepted at all POS PIN Debit locations </li></ul><ul><li>“ Cash Back” with PIN purchases </li></ul><ul><li>Free signature POS with VISA® signature transactions </li></ul><ul><li>ACH Transfer </li></ul><ul><li>To existing bank accounts = 100%access </li></ul><ul><li>Orlandi Valutta </li></ul><ul><li>Money Transfer to Mexico & Latin America </li></ul>
  9. 9. National ATM Coverage
  10. 10. Enrollment <ul><li>Collect basic employee information </li></ul><ul><ul><li>Name, address, DOB, SS#, account # </li></ul></ul><ul><li>Tailored enrollment via: </li></ul><ul><ul><li>Batch file </li></ul></ul><ul><ul><li>Web utility </li></ul></ul><ul><ul><li>Bulk enrollment </li></ul></ul>
  11. 11. Funding Options <ul><li>Standard ACH Direct Deposit </li></ul><ul><ul><li>No additional processes, software or banking relationships required </li></ul></ul><ul><li>Web Funding </li></ul><ul><ul><li>Instant funds transfer </li></ul></ul><ul><ul><li>Internet based </li></ul></ul><ul><ul><li>Off cycle adjustments </li></ul></ul><ul><li>Batch File Funding </li></ul><ul><ul><li>Same Day Funding </li></ul></ul><ul><ul><li>Processes up to 8 times per day </li></ul></ul>
  12. 12. Recent Innovations – Implementation Services <ul><li>Bulk enrollment </li></ul><ul><ul><li>Personalized Cards created and distributed for current employees </li></ul></ul><ul><ul><li>We provide Client with account number file for upload into Payroll </li></ul></ul><ul><li>Instant Issue Visa Capability </li></ul><ul><li>Batch File Funding </li></ul><ul><ul><li>Twice Daily at No Cost; up to Eight times Daily available </li></ul></ul><ul><li>Personal Contact with every new Cardholder </li></ul><ul><ul><li>On initial set up call Live Customer Service will answer to provide personal set up and answer any questions. </li></ul></ul><ul><ul><li>Minimizes the need for direct cardholder training and saves significant store management time </li></ul></ul><ul><ul><li>- </li></ul></ul>
  13. 13. Payroll Challenges to Achieve 100% Electronic Pay <ul><li>Variable Regulations in a fluid environment </li></ul><ul><ul><li>Most states with regulations addressing electronic pay require a paper check option </li></ul></ul><ul><ul><li>Difficult to mandate “paperless pay” </li></ul></ul><ul><li>Employee resistance to direct deposit, employees who want a “check” </li></ul><ul><li>Thirty-three states require free check cashing for payroll checks </li></ul>
  14. 14. Compliance through the Money Network™Solution The Money Network™ Service <ul><li>b) The Money Network™ Check: A paper check for full access to net pay without fees </li></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><ul><ul><li>Employee generated as desired; no employer involvement </li></ul></ul><ul><ul><li>Approved by CA DLSE as compliant with CA 212 </li></ul></ul>Voluntary direct deposit to the financial institution of employees choice Employee Choice: -or- a) Voluntary Money Network™ Card* *Use of the card by the employee is optional.
  15. 15. Payroll Check 212. (a) No person, or agent or officer thereof, shall issue in payment of wages due, or to become due, or as an advance on wages to be earned: (1) Any order, check , draft, note, memorandum, or other acknowledgment of indebtedness, unless it is negotiable and payable in cash, on demand, without discount, at some established place of business in the state, the name and address of which must appear on the instrument .
  16. 16. Achieving 100% Electronic Payments Providing What Everybody Wants / Needs Employer Employees with Bank Accounts Employees without Bank Accounts 100% Electronic Payment Select direct deposit to personal bank Select Money Voluntary Paycard *The Money Network™ Check is a negotiable instrument in all 50 states. Employees without Bank Accounts Default Money Network Checks*
  17. 17. Success Stories <ul><li>National Apparel Retailer </li></ul><ul><ul><li>350 locations / 52,000 employees </li></ul></ul><ul><ul><li>Increased electronic pay by 40% in 90 days (9,000 active cardholders) </li></ul></ul><ul><ul><li>Program: Company Wide Mandate </li></ul></ul><ul><li>National Restaurant Chain </li></ul><ul><ul><li>1,800 locations / 110,000 employees </li></ul></ul><ul><ul><li>Currently 99% electronic (40,000 active cardholders) </li></ul></ul><ul><ul><li>Program: Condition of new hire </li></ul></ul><ul><li>National Restaurant Chain </li></ul><ul><ul><li>251 Locations / 20,000 employees </li></ul></ul><ul><ul><li>Increased electronic pay from 20% to 67% </li></ul></ul><ul><ul><li>Program: Elective Opt-out </li></ul></ul>
  18. 18. Money Network Differentiators <ul><li>Only Provider that can provide a nationwide compliant solution for 100% Electronic Pay </li></ul><ul><li>Core Competency & Vertical Integration </li></ul><ul><li>Implementation Experience & Flexibility </li></ul><ul><li>800+ Clients across all industry verticals </li></ul><ul><li>Enrollment & Funding options </li></ul><ul><li>Personalized client and employee training </li></ul><ul><li>Employee Friendly Fee Schedule </li></ul><ul><ul><ul><li>No NSF Fees </li></ul></ul></ul><ul><ul><ul><li>Unlimited VISA OTC at no cost </li></ul></ul></ul><ul><ul><ul><li>Unlimited Money Network Checks - No-fee, compliant cash access at check cashing </li></ul></ul></ul><ul><ul><ul><li>locations nationwide </li></ul></ul></ul>
  19. 19. Next Steps <ul><li>Review Services Agreement </li></ul><ul><li>Choose a roll-out strategy </li></ul><ul><ul><li>Bulk Enrollment, Opt-Out, Condition of Hire </li></ul></ul><ul><li>Target “Go Live” Pay Date </li></ul><ul><li>Develop Implementation Plan & Employee Marketing Strategy </li></ul>