Bank rates for consumers at all time high

Banks across the country continue to press the metal to bring in more fee income. The pressure is on - 'big time'.

Without making a political statement here, banks must find more ways of generating fee income. From the expense side, banks are 'staring down the barrel' of Congress and the Fed who may impose 3X the FDIC premiums previously charged. At the same time banks are 'taking heat' from those who believe that overdraft and other bank charges are onerous. With the federal government's involvement, banks must consider changing their pricing (overdraft fee) policies just as Bank of America recently announced.

While all of these issues are being debated, today the South Florida Business Journal online, referenced a Banrate article which illustrates the continual year to year increases in bank fees. Consumers on average are paying higher monthly service fees, overdraft fees, NSF, ATM transaction fees and various interest and non interest checking account fees.

It's no wonder consumers are looking for alternatives. Prepaid cards and payroll cards like Directo's DirectoPlus and DirectoCash cards are on the rise. "We are seeing a greater acceptance", CEO Bob Howe reports.

The next question on the horizon, how will the impending credit card crisis impact consumers? What will be the impacts and outcomes as interest rates rise for the common consumer? Will debit transactions continue to outstrip credit transactions? It sure looks that way.

Time will tell.

Starbucks is testing a payment innovation with big possibilities

The New York Times reported today on a Starbucks app for the iPhone that lets the customer store favorite coffee drink types on a list, then tap on their choice while waiting in line at Starbucks. The iPhone screen then displays a barcode for the barista to scan. Read the story.

You may not be a Starbucks customer, but rest assured that this technology will pop up somewhere in your life soon.

Text Alerts improve customer experience, reduce payday phone calls to your office

This week Directo launched Text Alerts for the Directocash paycard. On payday (or other days the cardholder selects) a text message is sent to the customer's cell phone with their account balance.

There is no charge for this service, and the customer can also edit the phone number online whenever they change phones or providers. They can also request account balances, mini statements, and amount of last direct deposit at any time, for a small fee.

Besides the convenience for employees, Text Alerts will eliminate many of the phone calls that companies receive from employees who want to know if they were paid and the amount of their pay.

Text Alerts are already a hit. Before the announcement emails went out, savvy customers were already clicking through to enroll themselves!

Tools for recovery - the economy, your wallet, your bottom line.

Despite news of economic recovery, debt management is still much in the news. The new, more frugal American is looking for ways to reduce future risk. Today's U.S. News and World Report online has an article on debt reduction that offers five tips. The most interesting one is more psychology than financial know how: You are not your debt. Read the rest here.

Directo offers paycards as well as electronic paystubs, W-2's and online billing. Payroll cost is more than just paper - the time it takes to manage payroll, from payroll production to employee requests for replacement checks and proof of income reduces the productivity of valuable employees. With Directo, your company can drastically reduce these costs and hassles.

I'm excited about a preview of the new online invoicing feature. Email a bill, and give your client the opportunity to pay online! Email to find out more.

NYT: Debit Card Use Increases as Consumers Limit Credit Card Use

According to an August 12th New York Times article, consumers are using debit more than credit cards, accelerating a trend that began before the recession:

"Both in terms of the number of transactions and the total dollar amount spent, debit cards have overtaken credit cards for U.S. consumers. In dollar terms, debit cards are now used for 50.4 percent of all noncash sales, though they have a lower average dollar amount per transaction, according to research from TowerGroup, a subsidiary of MasterCard Worldwide. Those smaller sales are key: debit card sales dominate small purchases like those made in convenience stores, coffee shops and gas stations."

Americans are more concerned with personal spending, and Visa and MasterCard-branded debit cards allow them the same access to retail spending, without the accumulated debt and high interest rates. The article goes on to say that direct deposit participation is at 72 percent now, higher than ever for the U.S., but still lagging far behind Europe.

Direct deposit is a sure way to cut payroll costs, and paired with Directo paycards, it allows your unbanked employees the access to savings, financial security, and purchasing power that comes with a bank account, but without the credit checks and risks associated with brick and mortar banks.

Cutting payroll costs is what it's all about - join us on Wednesday the 5th!

We have a free MyStub webinar scheduled the Wednesday the 5th at 2pm eastern. Drop me a line if you want to join in. In just twenty minutes you can find out how you can slash payroll costs while increasing efficiency. It's simple and once you learn how your employees can benefit you'll want it for yourself!

See you there!

MyStub webinars resonate - now with special offers

We're pleased at the response to the MyStub webinars. We've scheduled three so far, had to add a fourth because of demand, and may put them on a recurring schedule. Since belt-tightening has become a necessity, electronic paystubs are the logical next step once direct deposit (with Directo paycards, of course) is offered. Why print and distribute paper stubs? On payday, employees want to know net pay, and questions about withholding for taxes and benefits are easily viewed online. The savings in time and supplies is eye-opening.

To celebrate the MyStub launch, we're offering two Summer Specials guaranteed to save you even more.

Want to attend a webinar? Email bplatas@directo.net to be added to the list.