May is Directo Deposit Month - time to go green!

This is the year to cut your payroll cost to the bone - and Directo makes it happen, usually in just a week.

Directo paycards let you say goodbye to payday hassles of check distribution, replacing lost or stolen checks, and paycheck fraud concerns. No more dealing with escheat. Pay your employees via direct deposit, either with their existing bank accounts or with Directo paycard accounts that you open on site.

Simple to manage, no software or hardware to buy, no updates to install - enrollment is done online. Directo supplies cards, enrollment materials, and marketing materials to you free of charge. All materials available in English and Spanish, too.

Want to learn more? Call us!

Chase considers limit to debit card transactions

We predicted the end of free banking, and it's happening as banks scramble for ways to replace the billions in lost revenue brought about by changes in banking law.

Interchange fee limits being discussed mean that banks will make even less per transaction, according to Blake Eliss's story on CNN.com's Money Page:

Joe Price, president of consumer banking for Bank of America (BAC, Fortune 500), said in an e-mailed statement that the lower fee wouldn't fairly compensate the bank for the infrastructure and services it provides to retailers.

And consumers would end up feeling the pain when Bank of America is forced to recoup costs "by increasing the cost of their everyday debit card transactions, limiting their payment choices, and impacting industry innovation," according to the email.

Aside from mulling over a limit on transaction amounts, Chase is already testing $3 monthly fees on debit cards and $15 fees on checking accounts in certain states. Additionally, the bank announced in November that it has stopped issuing debit rewards cards. Read the entire story here.

Directo paycards are not affected by this type of increase, and continue to be the best banking choice those who want an alternative to traditional banks' increasing fees. Directo plan options include several ways to save, including some that bundle several free ATM transactions per month, and for those far from ATMs, one that include several free point of sale transactions per month. Visit www.directocard.com or call us at 866-365-6521 for information on how Directo paycards can cut your payroll costs and improve productivity.

Staffing sees increase, will other business follow?

Manpower CEO Jeff Joeres is feeling good about his industry's impact on economic recovery.

“We are definitely seeing improvements in the U.S. jobs market as companies begin to feel more positive demand for their products and services,” Joerres said. “It looks as if employers have reached the limit of what they can do with current staffing levels but are frustrated by an inability to find the right talent in the marketplace and beset by lingering doubt over the sustainability of the recovery.”

It's troubling, however, that permanent hires are lagging, as businesses do not want to commit to hiring full time staff. Cost cutting is a fact of life these days. Whether your hires are temporary or permanent, Directo paycards are a powerful tool for attaining aggressive direct deposit goals, a proven way to cut payroll production and distribution cost.

Read more of the article: Increase in temp work boosting economy, Manpower CEO says | The Business Journal

Win on Facebook!
Starting a new campaign on Facebook: Like us on Facebook and enter to win a $10 Amazon giftcard! First 100 names qualify - great odds! http://on.fb.me/frzpDN

Limiting debit card use will hurt consumers - Directo paycards are the best low cost alternative

The New York Post reports that several banks, including Bank of America, Chase, and Citi, are thinking about limiting debit card use to under $50 per transaction in order to make up for vanishing interchange fees. According to author Mark DeCambre:

The limits being contemplated would be imposed on debit-card holders regardless of how much money they held in their checking accounts and are likely to push customers to use credit cards to cover the difference.

"There's a real irony here that just as consumers are practicing greater levels of thrift through their debit cards, they might be presented with increased cost and a higher degree of uncertainty," said Doug Johnson, vice president at the American Banker's Association.

Directo paycards have a default Point of Sale daily limit of $510, the amount seems to be the sweet spot for most spending, allowing for the purchase of money orders, or to gas up, pay some bills and get the groceries. Account owners can raise the amount for free with a call to Customer Care, useful if you need to make a large purchase, such as a TV or kitchen appliance.

Read the article.

Attacked for her tax refund cash? She needed a Directo paycard!

This week, a woman in the metro Atlanta area cashed her $4000 tax refund check at WalMart, and was then attacked in the parking lot by someone who must have seen her flash that cash. Her little girl witnessed the thief beating her mother. The perpetrator was caught, but the woman was hurt and her child were traumatized. Direct deposit of that refund check would have gone straight to her bank or her Directo paycard account, and the transaction would have been safe, private, and deposited much faster, too.

Thieves are watching. Where do your employees cash their checks?

Read the original story here.

Michigan Direct Deposit Mandate Law Passes

Michigan labor law now allows for mandate of direct deposit, which will allow business owners to save big on payroll production and distribution, as well as eliminate the risk of check fraud.

Read an attorney's overview of the law here: http://bit.ly/h2DeCz

Now more than ever, Directo paycards make sense in Michigan. Unbanked workers will benefit, and so will the growing number of Americans disenchanted with their banks. Learn more at www.directocard.com.

Publish Post

Money management the Directo way

We've been reading articles and blogs about the new fiscal responsibility and how Americans are moving away from credit, paying down debt, and spending only what they have. At Directo, we're thrilled to offer a way to help out.

Simple to use Directo debit card accounts are a great tool for those who wish to spend only what is available, and a great way to establish a separate low cost direct deposit account to help manage money. Directo programs can be quickly set up, and because the accounts belong to the employees, there's no cost to the employer, while employees enjoy low-cost banking with high security and 24/7 access to their cash. Check out more at www.DirectoCard.com.

Bank account fees on the rise - we have a solution

It's inevitable. Take away a major revenue stream like overdraft fees, and the banks had to do something to make up for it. Read about it here.

What can you do about it? For many, a Directo account may be the answer. Call Jim McCarthy at 910.269.4332 to learn more, or email him at jmccarthy@directo.net.

Prepare for your seasonal workers

Spring is officially here, which means that your business is likely increasing staffing for the season. While this increased workforce brings additional challenges, Directo aims to ease payroll burdens for you and your employees.

While reducing costs and increasing productivity, paycard pioneer Directo allows your company to offer an unmatched employee benefit that will maximize their paychecks.

For unbanked employees, one of the largest hits to their pocketbooks is exorbitant check cashing fees. With these fees ranging on average about 5 percent of their check, Directo eliminates the need for this service and saves your employees hundreds over the course of a season.

An additional issue with check cashing falls on the employers' shoulders since workers often need to leave the jobsite early in order to cash their checks. The loss of productivity is also evident with the hassles of reaching workers in the field or having them come into the office to receive their checks. Directo eliminates all of these stresses since the deposits are automatic and instantly available.

Furthermore, Directo offers a variety of options to eliminate even more high fees faced by employees who need to send money to other locations. With options that include no additional monthly expenses, Directo can create an account that allows your employees to continue supporting their families worldwide.

Offering top-notch bilingual customer support, Directo helps your company attain 100 percent direct deposit while ensuring your employees aren't needlessly spending their paychecks simply to obtain what they worked so hard for in the first place.

Learn more at www.directocard.com

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!

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.

Cut costs before cutting staff

The latest Labor Department employment statistics show that U.S. jobs continue to decline. As small and mid-size businesses struggle to deliver products and services with diminished resources and personnel, others fight to keep the team they've worked hard to build.

Among the efficiencies that businesses can employ is the proven cost savings of direct deposit and payroll cards. Find how much your company can save.

At Directo, we've seen paycard use increase, as well as more companies willing to mandate direct deposit. The savings can be significant.

When your provider becomes your competitor...

Gaining a competitive advantage is tough enough without having your provider in a joint venture with your competitor. It came as a surprise when I read this announcement:

First Data (Money Network) and Bank of America created a joint venture to market credit, debit and prepaid cards as well as merchant loyalty, check and eCommerce payment processing to small business, commercial and corporate clients worldwide.

What does this signal to the Regional and Community banks?

Call Directo to find out how we support our bank clients and their paycard needs.

Jim McCarthy
770.810.6502

Chase Staffing makes wise infrastructure investments in lean economy

Longtime Directo customer Chase Staffing has made a number of changes in the past year, increasing efficiency and responding to the market.

They implemented a national Directo paycard program several years ago, then saw a way to cut paperwork and duplicate data entry even more. Last year we integrated paycard enrollment into their Tempworks utility. Cory at Tempworks blogged about it last week.

A wise investment has made an impact in efficiency at every branch, allowing busy branch personnel to spend more of their time placing employees - and making money.

Bad weather and business continuity - put paycards in your toolchest

Storm clouds roil overhead and with one call your foreman has the emergency generator ready to go, just in case. Or snow starts to pile up to the window ledges and you don't have to wonder how your workers will get to the office, because your business continuity plan has a skeletal crew of workers in the building while the rest work from home.

These two scenarios show how business continuity plans are essential to your peace of mind. Even something as simple as making sure that all management has a list of home numbers for all staff can make a difference.

Another simple solution? A Directo payroll card program with MyStub electronic paystubs. You can pay your workers no matter where they are, and because Directo accounts are FDIC insured, with funds held in an FDIC member bank, you know their funds are safe.

Start your plan today! Call Jim McCarthy at 770.810.6505, or email him at jmccarthy@directo.net.

Paycards are just one part of paperless payroll goal

Judging from yesterday's full MyStub webinar, interest in paperless payroll is strong and growing. We at Directo are excited to offer the MyStub electronic paystub, which added to our paycards make any payroll truly paperless. Besides the environmental benefits, the cost savings of electronic paystubs are huge, and with postage going up and service headed in the other direction, it's a no brainer.

If you couldn't log into the webinar or didn't hear about it until today, shoot an email to jmccarthy@directo.net (Jim McCarthy) for an invitation to the next one on July 15th. Guaranteed that your life will change in just twenty minutes.

PEO's and Staffing Companies Hit With Payroll Fraud

The American Staffing Association has issued a warning to its members to be on the alert for companies that create fictitious temporary employees that are paid out of the targeted staffing company's bank accounts. Although the victimized companies are in Georgia, all should be watchful.

Below is an excerpt from the email alert:

Firms Should be Vigilant According to a detective from the Fulton County, Ga., police department, at least three staffing firms have been targeted in an alleged scam by perpetrators in Georgia. The suspects, Nicholas Lee Thomas and Jakim Edward Pearson, allegedly operate Furniture Showroom Inc., Appliance Warehouse, Radiator Warehouse, and Weatherization Inc. According to the detective, they allegedly contact staffing firms to manage their companies' payrolls and then defraud the firms by submitting falsified timecards and names of fictitious employees. The suspects also allegedly remit payments to the staffing firms using checks that later bounce.

At Directo we conduct due diligence on new clients in order to avoid these situations, and monitor accounts to maintain security.

Turning the corner -- we're seeing it already

If you keep up with the news you've noticed that optimism is starting to bubble up from the usual grumbling about the economy. We've definitely seen signs of a turnaround here at Directo. Companies that had pulled back to conserve are hiring again, and many that were frozen into inaction by the downturn are now exploring new ways to save money as they grow once more.

At Directo, we know what it takes to successfully streamline payroll, cutting waste and freeing up valuable employee time through paperless pay technologies. More companies are taking advantage of our years of experience and our innovative solutions. To find out how you can grab some of that optimism for your company, check out www.directocard.com.

Paperless pay growing in popularity as a way to ease payroll pain.

If you Google "paperless pay" you'll find entries as far back as 2004. In the HR industry, that's practically the Middle Ages. There are many more entries from the last few months, as business diminished from a steady flow to a trickle in the difficult economy. Companies are now looking for a way to reduce expense, and paperless pay seems a clear answer.

Text messaging has grown too, hand in hand with direct deposit and electronic paystubs. In 2004, text messaging was a costly add-on to most phone plans. I recently caught my 82-year-old mother-in-law responding to a text. "Too much trouble to get up and check email," she grumbled. Without knowing it, she'd put her finger right on the source of the growth in popularity of paperless pay--pain and bother.

The early adopters have all been on direct deposit since the beginning. As soon as online check stubs are available, they'll sign up, knowing that they can print one out if and when they need one. Text notifications of account deposits find them where ever they might be, telling them that their payroll has hit their bank account.

For the rest of the employee population, adoption happens when events dictate a change. Several Directo clients adopted paycard programs because of robberies. Employees who would cash their paychecks were mugged and lost all of their cash. Direct deposit was the obvious solution, but because they couldn't open bank accounts, their managers looked for an alternative that would help workers stay safe. Directo paycards were introduced to the employees, and soon became part of their way of life. They were eager to step away from the role of "potential victim" and with Directo's help joined (or rejoined) the banking mainstream.

Meanwhile, payroll costs are rising, and fraud risk has grown. Employers are looking for any way to cut costs while keeping their data secure. Paperless pay becomes the clear answer. Just as texting is now enjoyed by people of all ages and walks of life, so too will electronic payroll delivery. Don't wait until it hurts.

Paycards rules changed in Virginia

Virginia has cleared the way for mandating direct deposit, allowing employers to pay their workers with a paycard if the employee has not supplied bank account information for direct deposit of payroll. The paycard must allow for a free withdrawal or transfer per pay period.

According to the Richmond Sunlight,

"Currently, payment via prepaid debit card or card account requires the affirmative consent of the employee, though such consent is not required if the employee has not designated a financial institution to which payment by electronic automated fund transfer could be made and the employee is employed at an amusement park."

Directo paycards are the ideal solution for Virginia's employers, fulfilling all of the legal requirements in addition to providing outstanding service. Now all employers can take advantage of the payroll savings that direct deposit, maximized by Directo's robust paycard program, can bring!