Preparing for the worst.

The recent extreme weather we've experienced across the country has everyone examining their business continuity plans. Direct deposit should be primary in both individual and business recovery plans, and Directo paycards can make direct deposit work for everyone in your company.

Direct deposit and Directo paycards enable you to pay a scattered workforce, and because Directo can instantly replace lost cards, your displaced employees can receive pay with minimal or no interruption.

Read our informative Business Continuity white paper, and find out more at www.directocard.com.

No Free checking + Job cuts = Poor Service and Higher Fees. Time for a Directo account!

Job cuts at banks means even less service to go along with the increase fees we've already seen. Directo is the low-cost choice that allows you (and if you're a business manager or owner, your employees) to bank when and where you want to bank, and with FREE bilingual customer service.

From today's PaymentsSource.com newsletter:

What do Wells Fargo, American Express, PNC, Fifth Third and Synovus have in common? They've all announced job cuts this week. The Wall Street Journal said analysts expect banks to reduce operating costs by as much as 20% over the next few years "as they struggle to put their bad loans behind them, adjust to a raft of costly regulations and increase revenue in challenging economic conditions."

Need to know more about Directo? Visit us at www.directocard.com.

It happens every week - checks put employers at risk again and again.

Without requiring employees to use direct deposit you and your employees are potential targets. The linked article was in the news yesterday but we hear about it every day. In this instance, a 70-year-old woman was followed after cashing her unbanked employees' payroll checks. She was injured and has lost the entire payroll. Now they have a suspect in mind.

Lilburn Police: Woman Identified in Robbery of 70 Year Old Business Owner - 11Alive.com | WXIA | Atlanta, GA

Directo can help you and your employees eliminate the risk, expense and hassles associated with paychecks without it costing you a dime. Make your paydays safe, for you and your employees. Call us at: 1.866.365.6521, email Jim McCarthy at jmccarthy@directo.net, or visit our website at www.directocard.com.

Award bonuses with gift cards - a growing trend

An article in today's Washington Post announced the new FDA chief's suspension of their gift card program to award informal bonuses. He wants to be sure that there is a clear criteria for receiving the cards, 160 of which were ordered at $250 apiece "to reward employees for their hard work." They'll start the program up as soon as the chief is assured that everything was done "by the book."

Using prepaid cards for incentive pay is a proven way to reward employees. Rather than run bonuses through payroll, the cards are stockpiled, to be handed to employees when goals are met, or superior performance is rewarded. Cards in small denominations can be used for spur of the moment "attaboys" that increase employee loyalty.

Facts are showing prepaid cards and payroll cards are better for some

A recent study by Lightspeed Research as illustrated in a whitepaper by Aite Group LLC, further supports the notion that Prepaid Cards and paycards or more commonly referred to as payroll cards, are in fact a better product than traditional checking accounts for 14% of the banked population.



This is a real threat to banks who arguably may be providing the wrong product for their low end customers. Or perhaps they are providing the right product at too high a price. Banks must find a way to profit from each 'strata' of customer that they serve. The article suggests that Banks and financial institutions can actually win in this category by partnering with companies that are successful, marketing in this markeplace.



For 10 years, Directo Inc. of Atlanta has been 'carving out a niche' in providing payroll cards and prepaid cards to the unbanked and low wage earner. Helping over 250,000 with basic banking needs, Directo is growing its business by helping over 70 banks, assist their customers or workers of corporate customers in this arena. for more information see http://www.directocard.com/.



Aite Group LLC is a leading and relevant research and consulting firm serving the financial services arena.

Positive Pay - Is it enough in these times? In the end, who gets hurt, really?

In these unprecedented times in banking, financial institutions now more than ever are reassessing relationships and in many instances, resetting the terms and lowering their risk with certain customers. In fact many financial institutions are demanding that certain customers change the way they do business.

Here's a scenario that the bank and company are trying to avoid; Outside a check casher, a fraudster waits for an innocent customer to arrive. The fraudster says, " Hey mister, there's a long line in there and you don't have all the time in the world. Let me cash this check for you. In fact, I won't charge you. I'll stay here and cash it with the rest of my checks." The innocent transaction takes place and the customer is on his way with cash in hand.

Meanwhile the fraudster takes the check, copies the check's microcoding with the company's bank and routing number. After a quick trip to the office supply store to purchase blank check stock, he then creates several other checks using the company's bank information. He hires a few people or in some cases, dozens of people to cash the fake checks all over town. He takes his 'profits' and hits another innocent person and company.

So who pays for this scam and the loss of thousands of dollars? If the checks clear through the banking system, the company typically ends up 'holding the bag' and absorbing the losses.

To curb this fradulant activity, banks offer a popular service called Positive Pay. From the Wikipedia definition of Cash Management "Positive pay is a service whereby the company electronically shares its check register of all written checks with the bank. The bank therefore will only pay checks listed in that register, with exactly the same specifications as listed in the register (amount, payee, serial number, etc.). This system dramatically reduces check fraud."

A bank's Cash Management Services organization is typically responsible for educating, selling and providing a Positive Pay solution to its customers. Once implemented many of the problems of check fraud disappear. But is the company totally out of the woods? What if this same fraudster hits again?

While it is true that fraudulent attempts may continue in some form, at least the bank and company are protected. With Positive Pay fraudulent checks are returned to the merchant. It's the grocer, check casher, liquor store or merchant that has decided to take the risk to cash the check. They then take the loss in this case. Somebody has to pay.

But there is more to the story, particularly for low income people. The 'unbanked' also takes the hit! Why? Because when the merchant cashes a fraudulent check from a company, the next man to attempt cashing a check may be turned away, or to make matters worse, paying an exorbitant amount just to get his hard earned paycheck cashed. Ultimately, who gets hurt, really?

And so while on the surface the company and bank have reduced their risk, what have they done to their workers, the individuals who are now paying more to get their checks cashed?

Companies must consider the ramifications of Positive Pay to the entire 'food chain' of payments. Some have looked to Directo paycards to help mitigate the risk and help their workers. Again, in the end, without a program like Directo, who gets hurt, really? Your workers, and you.

BH
http://www.directocard.com/

Employees using paycards to control spending

Employers who offer paycards are finding that even employees who have traditional accounts are taking them up on the paycard offer. Low cost paycards are increasingly used to split direct deposits into two "spending buckets," using each for a different purpose, such as one for paying down loans and credit card bills and one for day to day expenses, or even a holiday savings account.

Directo paycard programs cost employers nothing. You can support your employees' debt-reduction or savings efforts easily, while reducing payroll costs and fraud risk. Directo's fast implementation means you can be check free in two weeks. Find out more at www.directocard.com.