Still, many of us tend to take better care of our cars than we do our financial life.

The irony being, an un-tended financial life can break down just as assuredly as an under-serviced automobile. It can run out of gas, but it can also seize up and need a roadside tow.

In short, a well-examined financial life is worth exploring.

1. Schedule. Set a recurring point in time for an annual look at your income vs. expenses. If you have a financial advisor, he or she will likely conduct reviews and/or send statements with regularity. Even if you do have this resource who evaluates your accounts and portfolio overall, you can still plan your own year-in-review to investigate what you’ve done and what you plan to do. Like any scheduled maintenance – put it on your calendar.

2. Software. If you still use a traditional check register to record expenses and income, it is time to select any one of the hundreds of software programs to do same. They range in complexity, but all have features that allow you to pull reports based on expense type by: payee, date range, etc., so you can take a detailed look at where your money goes.

3. Fees. Look at all your bills – credit card and utility. Would you benefit from consolidating to fewer credit cards? Are there cards that give rewards, cash back? On your cable bill, is your promotional pricing nearing its anniversary date? Should you consider removing services you don’t use or re-upping for another contract? Or do you explore cutting the cable cord to look at streaming services? If you pay your cellular bill consistently, call your provider and ask if you are eligible for any reductions as a long-time customer in good standing.

4. Interest. Take a cursory look at your home’s equity. Does a line of credit or equity loan make sense to take care of expenses that are weighing you down? Or should you refinance to a better interest rate before rates increase? Is it time to downsize, upsize, buy instead of rent?

5. Rates. We tend to stay with the same car insurance provider. However, those rates can fluctuate (sometimes dramatically) from year to year. Shop around and then call your agent to see if keeping your business is worth an adjustment.

6. Consult. Ask friends and trusted colleagues who they recommend as a financial planner. For both long- and short-term goals, you can typically benefit from an expert, un-biased opinion on the strategies that contribute to financial security.

As Americans, we tend to live beyond our means and rely, often too heavily, on credit. Whether it is your very first job and you have the option to participate in the company’s 401k, or are an entrepreneur who has built a business over a lifetime, you owe yourself such introspection.
Consider your goals and the money you need to fulfill them. You will enjoy a well-planned financial life.

The information contained in this article and any other article do not reflect the views of rapid! PayCard®. The opinions, conclusions and other information expressed are neither given nor endorsed by rapid! PayCard® or its representatives, but provided for the sole purpose of presenting updates on current research in this sector.

The rapid! PayCard® blog and any information contained within do not reflect the views of MetaBank® or Mastercard®, nor are they endorsed by MetaBank or Mastercard.

In their April 2016, article, Pew Research Center cited estimates by the U.S. Census Bureau that millennials have now “surpassed Baby Boomers as the nation’s largest living generation”.

A powerful consumer force, the members of this group are working “real jobs” and building careers. They are open to alternatives. They also need them as they don’t typically comply with traditional banking methods.

Per rapid! PayCard’s October 2016 article about banking options for millennials and the flexibility of getting paid:

Most have likely not written a physical check, never mind being paid by one. And what about direct deposit? A convenience staple appreciated by employees worldwide, it necessitates an account to receive the funds.

For all the flexibility of the paycard alternative, the payroll evolution has coincided at the perfect time to intersect with the demands of a younger generation.

National Teach Children To Save Day

Speaking of a younger generation, it is never too early to begin an education about money.

Financial Literacy Month is observed in April and is capped off with National Teach Children To Save Day, celebrated this year on April 28, 2017.

In observance, area bankers visit local schools to convey the fundamentals of finances to young students. The value of a lifelong commitment to saving money is taught to children in a way that is impactful and easy to understand.

Sponsored by the American Bankers Association (ABA), this annual event is in its 20th year.

By opening an awareness to children at these impressionable ages, a rudimentary understanding takes shape that can literally help support them during their earning years and into retirement planning.

Janet Bodnar, Editor of Kiplinger’s Personal Finance penned some suggestions, (in a post from April of 2008), about how to teach young children to save. Lessons still relevant today:

1. Start early
2. Start small
3. Keep it simple
4. Make it fun
5. Set a goal
6. Reward your children’s efforts

Walking the Talk

As any parent or guardian knows, this is a lesson best learned by example. Young children absorb much more than they are often given credit for: saving for the future is a message transmitted by how you conduct your own financial life.

Do you talk about saving? Compare prices? Weigh decisions based on value for the dollar? Take the time to explain about living within one’s means and how to shop responsibly?

Once they are of “allowance age” and your child needs to dip into his or her own savings to buy something they want – another valid lesson about saving versus spending will be learned.

Here at rapid! PayCard, we are committed to improving efficiencies of payroll processing while helping to reduce costs.
We also provide means for the unbanked/those looking for alternative banking solutions to be able to shop and pay bills online with a paycard replenished by their employer.

With access to your savings account, you can watch that nest egg grow as you reap the benefits of a healthy financial life.

The information contained in this article and any other article do not reflect the views of rapid! PayCard®. The opinions, conclusions and other information expressed are neither given nor endorsed by rapid! PayCard® or its representatives, but provided for the sole purpose of presenting updates on current research in this sector.
The rapid! PayCard® blog and any information contained within do not reflect the views of MetaBank® or Mastercard®, nor are they endorsed by MetaBank or Mastercard.

Transaction Expected to Generate Significant Strategic and Financial Synergies

PASADENA, Calif.–(BUSINESS WIRE)–Green Dot Corporation (NYSE:GDOT) today announced that it has entered into an agreement to acquire UniRush, LLC, and its operating businesses RushCard, a leading online direct-to-consumer general purpose reloadable prepaid card provider, and Rapid! PayCard, a leading corporate payroll card provider. The acquisition, which maps to “Step Five” of Green Dot’s “Six Step Plan” to enhance shareholder value, materially expands Green Dot’s scale with the addition of the RushCard and Rapid! PayCard installed customer bases, while establishing Green Dot as a formidable player in the growing corporate payroll card and wage disbursement market. The acquisition is expected to close prior to the end of Q1, subject to customary closing conditions.

Said Steve Streit, Green Dot’s Founder and CEO, “As one of the largest and most successful FinTech banking franchises in America, Green Dot has proven its ability to efficiently integrate highly accretive acquisitions We believe the acquisition of UniRush, LLC, including the RushCard business and the Rapid! PayCard corporate payroll card business will be a strategic and financial success in both the near and long term. In particular, the RushCard program has for many years been one of the most important and respected prepaid programs in America with a mission espoused by its legendary founder, Russell Simmons, strikingly similar to that of Green Dot’s long time mission- to reinvent personal banking for the masses and to empower the unempowered. I am delighted to continue my long relationship with Russell and am eager to partner with the UniRush team to serve the customers we both care so much about while focusing on generating a strong economic return for Green Dot investors.”

Russell Simmons, RushCard co-founder, stated, “Fourteen years ago I embarked on an incredible journey to provide a new financial tool for millions of Americans who had only limited access to traditional banks. As I have done with my ventures in music, comedy and fashion, I am partnering with the best company in the industry, Green Dot, to expand our opportunities and continue our mission to revolutionize the banking industry. We believe our customers are among the most loyal in prepaid and I want to thank them for their years of support. We are excited to continue and expand upon our tradition of providing great and important products for our customers over the many years to come.”

Ron Hynes, UniRush CEO, stated, “This is an extraordinary milestone for UniRush, LLC., made possible by the hard work and dedication of each of the RushCard and Rapid! PayCard employees who have built our business to what it is today. Green Dot can now provide the scale and resources necessary to greatly expand our reach and to more efficiently deliver our innovative products and services to the millions of Americans who need them. We are all looking forward to joining forces with Green Dot, and I am thrilled to be working alongside two of the pioneers of the industry in Russell Simmons and now Steve Streit.”

Financial Details:

Price: Green Dot will acquire UniRush, LLC for $147 million plus a minimum $4 million annual earn-out payment for five years post closing. The annual earn-out payment could become greater if certain revenue growth hurdles applied to the RushCard general purpose reloadable prepaid card program are achieved in a given year, although any potential increase is not expected to be material to the overall price of the acquisition. The acquired company will be debt-free and cash-free at the time of closing with the exception of working capital items. In the event that there is a regulatory finding and a resulting financial obligation to UniRush, LLC stemming from the 2015 RushCard processing incident, such regulatory resolution and the associated financial obligation will belong to the seller with such obligation expected to be fully resolved prior to closing. Lastly, Green Dot will be indemnified through a cash escrow reserve, funded by the seller, in respect of the acquired company’s prior operations.

Tax Benefits: Green Dot expects to realize approximately $44 million in tax benefits on a net present value basis, bringing the net cost of the acquisition, including the minimum earn-out payments, to $123 million.

2017 Income Statement Impact: Assuming the transaction closes at the end of Q1, for 2017 on a pre-synergies stand-alone basis, Green Dot projects that the acquired business will generate a range of approximately $70-$80 million in incremental non-GAAP adjusted revenue, a range of $7-$8 million in incremental adjusted EBITDA and a range of non-GAAP fully diluted incremental earnings per share of $0.04 to $0.05, net of interest expense related to deal financing.

Purchase Price Multiple: At the midpoint of Green Dot’s annualized projected 2017 adjusted EBITDA for the acquired business on a pre-synergies stand-alone basis, based upon the total purchase price including the minimum future period earn-out payments due under the agreement, but net of expected tax benefits, the acquisition represents a purchase price multiple of approximately 12.3x adjusted EBITDA. Post synergies, which the company expects to largely realize within 12-18 months of closing, the acquisition is expected to represent a forward-looking purchase price multiple of 5x-6x adjusted EBITDA.

Form of Consideration: Closing consideration will be paid using a mixture of cash on-hand and new debt.

Future Use of Capital: Green Dot reiterates its intent to acquire an additional $50 million of its shares in 2017.

Strategic Rationale:

Scale: The RushCard general purpose reloadable prepaid card program is one of America’s most established prepaid programs with the majority of its active customers being highly-valuable, long-term direct deposit cardholders. We believe the Rapid! PayCard corporate payroll card program is one of the fastest growing payroll card companies in America, serving over 2500 corporate customers with PayCards and associated services. Together, these two UniRush programs are expected to add over 750,000 new active cardholders to Green Dot’s highly-efficient and vertically integrated FinTech banking platform.

Business Synergies: As a direct-to-consumer online business, following the acquisition, the RushCard program will be consolidated into the “Green Dot Direct” division that houses GreenDot.com, GreenDot.com/Platinum Secured Visa Credit Card, WalmartMoneyCard.com, AccountNow.com, AchieveCard.com, GoBank.com and ReadyDebit.com. With the UniRush acquisition, Green Dot will rank among the nation’s largest mobile, online and direct mail “direct-to-consumer” providers of bank accounts, debit cards and related financial services. Furthermore, Green Dot expects the UniRush acquisition to enhance its Green Dot Direct division’s growth prospects amongst the tech-savvy urban and millennial consumer segments of the financial services market where the RushCard program has traditionally excelled.

Rapid! PayCard, when added to Green Dot’s existing PayCard business and its growing 1099 wage disbursement business, is expected to rank the consolidated platform as a top 5 corporate payroll card provider nationwide, giving Green Dot the scale and expertise to become a formidable player in the growing corporate payroll card and 1099 wage disbursement space.

Earnings Conference Call

The Company will discuss the acquisition, the financial impact to Green Dot’s fiscal 2017 outlook, and 2017 financial guidance on the Company’s fourth quarter and 2016 earnings conference call on February 22, 2017.

Advisors

BofA Merrill Lynch acted as financial advisor to Green Dot in connection with the acquisition and Strategic Law Partners, LLC served as Green Dot’s legal counsel. William Blair acted as financial advisor for UniRush and Debevoise Plimpton served as UniRush’s legal counsel.

Forward-Looking Statements

This announcement contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding the acquisition of UniRush and the time frame in which this will occur, the expected benefits to Green Dot and its customers, stockholders and investors from completing the acquisition, including without limitation expected incremental non-GAAP adjusted revenue, adjusted EBITDA and non-GAAP fully diluted incremental earnings per share, the tax benefits expected to be derived therefrom, the projected purchase price multiple in 12-18 months, expansion of Green Dot’s addressable market and customer base, integration and synergy efforts, and the potential benefits to be derived therefrom, and the sufficiency of the escrow fund to cover expenses incurred by the buyer related to the settlement of any past, present or future claims made in relation to the acquired company’s prior operations. Actual results may differ materially from those contained in the forward-looking statements contained in this announcement. The potential risks and uncertainties that could cause actual results to differ from those projected include, among other things, the businesses of the Company and UniRush may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; the risk that the acquisition of UniRush may not occur or that sales of RushCard or Rapid! PayCard products and services will not be as high as anticipated; the expected growth opportunities, tax benefits, or cost savings from the acquisition may not be fully realized or may take longer to realize than expected; customer losses and business disruption following the acquisition, including adverse effects on relationships with former employees of UniRush, may be greater than expected; and the risk that the Company may incur unanticipated or unknown losses or liabilities if it completes the acquisition of UniRush. Additional factors, that could cause actual results to differ materially from those expressed in the forward-looking statements include the timing and impact of revenue growth activities, the Company’s dependence on revenues derived from Walmart and three other retail distributors, impact of competition, the Company’s reliance on retail distributors for the promotion of its products and services, demand for the Company’s new and existing products and services, continued and improving returns from the Company’s investments in new growth initiatives, the extent to which the Company’s processing technology partner covers the Company’s expenses and other losses associated with the processor migration issues that began in May 2016 and have caused a delay in the Company’s processor migration until at least the first half of 2017, potential difficulties in integrating operations of acquired entities and acquired technologies, the Company’s ability to operate in a highly regulated environment, changes to existing laws or regulations affecting the Company’s operating methods or economics, the Company’s reliance on third-party vendors, changes in credit card association or other network rules or standards, changes in card association and debit network fees or products or interchange rates, instances of fraud developments in the prepaid financial services industry that impact prepaid debit card usage generally, business interruption or systems failure, and the Company’s involvement litigation or investigations. These and other risks are discussed in greater detail in the Company’s Securities and Exchange Commission filings, including its most recent annual report on Form 10-K and quarterly report on Form 10-Q, which are available on the Company’s investor relations website at ir.greendot.com and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of January 30, 2017, and the Company assumes no obligation to update this information as a result of future events or developments.

About Green Dot

Green Dot Corporation, along with its wholly owned subsidiary bank, Green Dot Bank, is a bank holding company regulated by the Board of Governors of the Federal Reserve System and the Utah Department of Financial Institutions. Green Dot is widely recognized as the inventor of the prepaid debit card industry and is the largest provider of reloadable prepaid debit cards and cash reload processing services in the United States. Green Dot is also a leading financial technology company and the largest processor of tax refund disbursements in the U.S. through its wholly owned subsidiary, TPG. Green Dot is also a leading provider of mobile banking with its GoBank checking account sold at retailers nationwide and through integrated technology partners. Green Dot’s products and services are available to consumers through a distribution network of more than 100,000 U.S. locations, as well as online, in the leading app stores and through leading online tax preparation providers. Headquartered in Pasadena, Calif., it has additional facilities throughout the United States and in Shanghai, China.

About UniRush, LLC

UniRush, LLC, which helped pioneer the prepaid debit card industry with the Prepaid Visa RushCard, one of the first general purpose reloadable prepaid debit cards in the marketplace, provides members with access to services that enable them to achieve their personal and financial goals. UniRush offers Americans an array of basic financial services via the RushCard. To learn more about the RushCard, visit www.rushcard.com or find us at Facebook.com/Rushcard or on Twitter @RushCard.

Contacts
For Green Dot Corporation:
Investor Relations
626-765-2427
IR@greendot.com
or
Media Relations
Brian Ruby, 203-682-8268
Brian.Ruby@icrinc.com

The information contained in this article and any other article do not reflect the views of rapid! PayCard®. The opinions, conclusions and other information expressed are neither given nor endorsed by rapid! PayCard® or its representatives, but provided for the sole purpose of presenting updates on current research in this sector

Not planning early enough for retirement and neglecting to have three months of expenses saved is something of which both men and women are guilty. In everyone’s defense, it is often challenging to have the time and the perspective to map out our financial lives. Difficult too, is the ability to allocate income to investments when the unexpected job loss occurs. Being prepared for eventualities takes dedication.

While being negligent about securing finances for the future knows no gender-bias, women in particular are vulnerable when it comes to their financial lives. Some aspects are errors on their part, but many are due to elements out of their control.

In an interesting Blackrock Blog article posted in March of 2016: “According to BlackRock’s 2015 Annual Global Investor Pulse Survey of more than 4,000 Americans, women are more likely than men to have no savings or investments, and by some measures, women’s average account balances are dwarfed by men’s.”

Reasons Out of Their Control

• Women live longer
• They tend to become the primary caregivers for others
• Females are typically paid less than their male counterparts

How To Make More Money

In this same article, Blackrock cites: “Women make 79 cents for every dollar made by their male counterparts, and the average full-time working woman loses more than $460,000 over a 40-year period in wages due to wage inequality, corresponding to 12 additional work years.” What else do we know?

1. Numbers don’t lie and facts are facts, but are behaviors can make the difference. Women need to assert more confidence when it comes to the criteria of a new job opportunity. It seems that men tend to apply whether or not they fully meet the criteria and women, only if they meet all the requirements. Confidence in their abilities to take on a more robust role in their chosen industry and belief that they can adapt to the needs of the new job’s demands is a quality women must cultivate – if they are looking for higher paying jobs.
2. Women are also less likely to request a raise than men – according to Blackrock, it is a 47 percent vs. 60 percent difference.
3. Double standards – we’ve heard it all before, but these innate qualities are bottom-line impacting. When promoting oneself, are men considered assertive, but women, aggressive? Is that how women are perceived when they exude the self-assurance it takes to request a raise? Apply for that next level job? Lobby for the promotion and the coveted corner office? If women see their roles as set in stone, then it is not a glass ceiling above them, it is a forcefield of rock.

How Not To Relinquish Control

In more gender-defined tendencies, in Fidelity Investment’s 2015 Retirement Fact Sheet states: “…while couples tend to make the bulk of their day-to-day financial decisions jointly, women are less likely to be the primary decision makers.”

Acquiescing to a spouse or significant other causes the money that fuels their future to be out of their control. Women who are compliant, need to take an interest, get educated on investment plans, and assume an active role in a financial strategy. This empowerment will contribute to more rewarding golden years for women.

The information contained in this article and any other article do not reflect the views of rapid! PayCard®. The opinions, conclusions and other information expressed are neither given nor endorsed by rapid! PayCard® or its representatives, but provided for the sole purpose of presenting updates on current research in this sector

Establish Goals

No matter your objectives for 2017, (losing 20 pounds, traveling more, consulting with a financial advisor) setting realistic goals is the first, most positive route toward achieving anything.
You don’t necessarily need fancy software to assess income vs. expenses. Review your check register, debit alerts, and your spending style to calculate where all your dough goes. Create an Excel spreadsheet or whatever tracking device is the simplest. Regardless of the tool you use, if you are not completely honest with yourself, these efforts will backfire.
Try to get your guidelines established before the new year, so you can hit the ground saving on the first of January. It psychologically makes for a fresh start and a positive, forward-thinking mindset.
Like going to the gym on a consistent basis, having someone to be accountable to is often helpful. Inspiring one another and sharing practical cost-savings tips goes a long way.

Spend Purposefully

You don’t want to live like a hermit, never enjoying dinners or long weekends away, but factor those luxuries into your budget. Never lie to yourself about what you are spending. Numbers never lie – you’d be doing yourself an injustice if you lie to yourself.
Even if you know in your heart an actual hardline budget will not work for you, give yourself a full ten minutes before spending money. Whether online or in a store, instead of submitting the items for purchase, visit another website, take a stroll around the mall – really mull the expenditure. Is it a want, a need, or if you must part with the cash, can you do additional research and find the same or similar item for less?
Make spending less of a reflex, and more of a resolute decision.

To Thine Own Self Be True

If you can’t really trust yourself to actively save, then do it passively by making the savings compulsory.
Whether you reach out to your company’s Human Resources contact or a representative at your bank, explore the best means of having payroll funds directed to a savings account.

The information contained in this article and any other article do not reflect the views of rapid! PayCard®. The opinions, conclusions and other information expressed are neither given nor endorsed by rapid! PayCard® or its representatives, but provided for the sole purpose of presenting updates on current research in this sector.

The following include some current legal requirements for pay cards and how rapid! PayCard complies:

Cash Access

Legal Requirement – State Statute of West Virginia:

Funds deposited into the pay card account must be immediately available to the worker.

W.V. Code § 21-5-3(a)(3).

rapid! PayCard Program:

The rapid! PayCard provides numerous ways for employees to access their pay each pay period, including:

• Over the counter bank teller transactions at banks displaying the logo of the applicable payment brand (Visa® or MasterCard®)
• Electronic transfer to a bank account
• US Post Office Money Order
• ChekToday¹ convenience checks
• ATM withdrawals at more than 55,000 locations in the Allpoint® ATM surcharge-free network
• Cash back with POS purchases using a PIN
• See your fee schedule for methods of accessing wages, including full net wages, in cash without cost.

Employer Costs and Incentives

Legal Requirement – State Statute of West Virginia:

No provision expressly addressing employer costs or incentives in the pay card context.

rapid! PayCard Program:

rapid! PayCard does not offer cash incentives to employers, or pass employer costs onto their employees.

Convenience Checks

Legal Requirement – State Statute of West Virginia:

State law does not authorize the use of convenience checks tied to a pay card account as a replacement for employer-issued paychecks.

rapid! PayCard Program:

rapid! PayCard offers ChekToday¹ convenience checks which can be used by cardholders to access wages at Walmart stores with Money Centers free of charge. ChekToday also can be used at check cashing facilities or to make other direct payments.

Transaction Histories

Legal Requirement – State Statute of West Virginia:

No express requirement relating to transaction histories on pay card accounts.

See federal requirements.

rapid! PayCard Program:

rapid! PayCard makes transaction information available to cardholders online, via the rapid!Access mobile application² and over the telephone². Transaction data can be printed from the cardholder website or upon request, rapid! will provide a written transaction history.

Ability to Change Payment Method

Legal Requirement – State Statute of West Virginia:

No express provision that addresses whether employees must be allowed to change the manner in which they receive their wages, but such a requirement could be inferred.

See federal requirements.

rapid! PayCard Program:

Employers who offer the rapid! PayCard are responsible for complying with applicable state and federal requirements regarding an employee’s ability to change payment methods.

¹    This optional offer is not an issuing bank product or service nor does the issuing banks endorse this offer.

²    While rapid! PayCard does not charge for this feature and service, standard text messaging, data and cellular rates may apply. Please check with your cell phone carrier and inquire about fees your carrier may associate with these services.

The rapid! PayCard® MasterCard Card is issued by MetaBank®, Member FDIC, pursuant to a license by MasterCard International Incorporated. Prepaid card can be used wherever Debit MasterCard is accepted. MasterCard is a registered trademark of MasterCard International Incorporated.

It is this familial foundation that connects us and gives us that strong sense of collaboration. From this solid footing, we internally develop processes that make our organization a reliable network. It enables us to get the solutions we need from any one of our resources who all share a commitment to excellence.

It is this same sensibility that allows us to provide the finest possible customer service to our clients.

Like any family, we are not always perfect, but we always try our absolute best. In the spirit of the season and with abundant gratitude, we thank you for your trust and for your business.

From all of us here, we wish you a wonderful Thanksgiving celebration!

We use our smartphones to manage everything – from the best travel routes to appointments, to shopping, to reading. Our devices include a personal, voice-activated assistant who can identify the proximity of the nearest Burger King.

Smartphones even give us our banking access. There is no waiting until the next business day to deposit paper checks. An app provided by your financial institution and permission to access your phone’s camera makes the addition of those funds to your account as simple as taking a photo to submit the image for a credit to your balance. Not to mention the ability to transfer money and review the status of debits and check clearing and those settings that alert you of all transactions so you are notified of potential account breaches.

Yes, in the banking world, we have become accustomed to 24×7 access that goes beyond the traditionally referenced “bankers’ hours” so we are connected with the status of our personal funds via the simple download and press of an app.

Charisse Jones, in her April 2016 USA Today article discussed how the U.S. Treasury Department has followed suit with the launch of their mobile app that provides recipients of federal benefits who are non-banked (those who do not have a traditional bank account from which they may obtain account detail) can now:

• Check account balances
• Scan transactions
• Discover locations where cash may be withdrawn

Per Ms. Jones:

Roughly 5.5 million recipients of social security, veterans and other recurring federal benefits have a Direct Express Debit MasterCard, where their funds are deposited allowing them to access cash at an ATM, make purchases and receive money back from merchants. While most of those card holders don’t have a traditional bank or credit union account, 53% had a smartphone last year.  Now, with the new Direct Express Mobile App, they will be able to get a variety of information about their benefits with the mere tap of a screen.

Her article goes on to quote Walt Henderson, director of the Electronic Funds Transfer Strategy Division at the Bureau of the Fiscal Service: ‘The app has many useful features to help cardholders manage their personal finances and greatly improve financial independence’.

Customer Service

An interesting aspect that technology delivers is a cost savings one. Ms. Jones wrote: Treasury officials also note that the app may help cut down on the 20 million calls a month recipients currently make to a call center to find out about deposits, balances, and purchases.

All in all, this Treasury Department app comes at a time when banks continue to make their services more accessible to their clients by facilitating the ability for their clients to access their funds. And for the un- or under-banked, this type of on-demand access ensures their needs are neither overlooked nor made more challenging.

The information contained in this article and any other article do not reflect the views of rapid! PayCard®. The opinions, conclusions and other information expressed are neither given nor endorsed by rapid! PayCard® or its representatives, but provided for the sole purpose of presenting updates on current research in this sector.

1. Cash Access

Legal Requirements

Employees must be allowed at least one withdrawal each pay period at no cost for an amount up to and including the total amount of the employee’s net wages.

Employers may not retain any interest in wages paid to an employee’s pay card account, other than the right to correct inadvertent overpayments in accordance with the rules governing direct deposit.

Kansas Stat. § 44-314(d).

rapid! PayCard Program

The rapid! PayCard MasterCard® provides numerous ways for employees to access their full net pay each pay period, including:

• Over the counter cash withdrawal at banks displaying the logo of the applicable payment brand (Visa or MasterCard)
• Electronic transfer to a bank account
• US Post Office Money Order¹
• ChekToday² convenience checks
• ATM withdrawals at more than 55,000 locations in the Allpoint® and MoneyPass® ATM surcharge-free networks
• Cash back with POS purchases using a PIN

See your fee schedule for methods of accessing wages, including full net wages, in cash without cost.

2. Employer Costs and Incentives

Legal Requirements

No provision expressly addressing employer costs or incentives in the pay card context.

rapid! PayCard Program

rapid! PayCard does not offer cash incentives to employers, or pass employer costs onto their employees.

3. Ability to Change Payment Method

Legal Requirements

No express provision that addresses whether employees must be allowed to change the manner in which they receive their wages, but such a requirement could be inferred.

Kansas Stat. § 44-314(e).

(See federal requirements)

rapid! PayCard Program

Employers that offer the rapid! PayCard are responsible for complying with applicable state and federal requirements regarding an employee’s ability to change payment methods.

4. Transaction Histories

Legal Requirements

No express requirements relating to transaction histories on pay card accounts.

(See federal requirements)

rapid! PayCard Program

rapid! PayCard makes transaction information available to cardholders online, via the rapid! Access³ mobile application and over the telephone³. Transaction data can be printed from the cardholder website or upon request, rapid! PayCard will provide a written transaction history.

5. Convenience Checks

Legal Requirements 

State law does not authorize the use of convenience checks tied to a pay card account as a replacement for employer-issued paychecks.

rapid! PayCard Program

rapid! PayCard offers ChekToday² convenience checks which can be used by cardholders to access wages at Wal-Mart stores with Money Centers free of charge. ChekToday also can be used at check cashing facilities or to make other direct payments.

While some mandates governing their use are similar or the same, we take our obligation about adherence and providing information as seriously as we do customer service.

¹ When a money order is employee’s first transaction for a pay period for the full amount of their pay, rapid! also refunds the amount of the USPS charge to the employee’s card account.

²  This optional offer is solely endorsed by rapid! PayCard.

³ While rapid! PayCard does not charge for this feature and service, standard text messaging, data and cellular rates may apply. Please check with your cell phone carrier and inquire about fees your carrier may associate with these services.

In some neighborhoods, there are conveniences to which we don’t give a second thought. If for example, you forget to swing by your bank on the way out to run errands, there is typically another automated teller or drive-through in which to take care of business. In other words, options.

But what if you lived in a financial desert? Neighborhoods bereft of easy and affordable access to a banking institution need solutions. According to Clayola Brown, President of the A. Philip Randolph Institute in her August 2016 article for The Huffington Post:

The lack of banks in low-income neighborhoods forces people who are already stretched for money pay more for less at check cashers and payday lenders. These financial predators are called “alternative financial institutions,” but in reality nearly 9 million African-American households have no other alternative. Nearly 21 percent are unbanked and more than 33 percent are underbanked. Nearly 10 percent of their average household income is spent on interests and fees. That’s the same percentage the average American household spends on food each year.

Simply put, financial deserts in African-American communities drain an estimated $21.4 billion each year in fees and interest. That’s money that could go toward education, transportation, food and, most importantly, back into our community and our small businesses instead of flowing out through the pockets of money changers.

Ms. Brown’s contention is not that brick and mortar banks be erected. “The solution is to green our financial deserts with electronic payments that save time and money, and protect the money of working people.”

The longer we here at rapid! PayCard® have been in the paycard business, the more it shows itself to be a viable alternative in so many circumstances. Paycards:

• Can reduce costs, improve efficiencies for employers
• Provide access to a savings account¹ for employees
• Create the ability to make purchases and pay bills¹ online
• Support the unbanked who do not have traditional banking accounts

(Nerdwallet cites an interesting look into the states and metro areas with the most unbanked households per their September 2016 post.)

By allowing people who live in financial deserts to conduct their business without being penalized by check-cashing fees and being given the latitude to enjoy the simplicity of direct deposit of wages, they have a better means of helping to protect their money.

A secondary, yet distinctive benefit of paycards is that they help keep more money in the wallets of consumers and allow those funds to be available for spending in the neighborhoods in which they live.

At the end of the day, paycards can offer significant savings over cash. The total monthly cost of relying on cash can be as high as $96 not including the time spent waiting in line at a check casher or to pay bills in person. Compare this to the approximate monthly cost of using a low-fee prepaid card: $24, and less time wasted getting less for your money.