Union Planters Bank is offering a new payroll option that gives companies the ability to use stored value card technology to replace the costly and often time-consuming paper paycheck process. This new payroll option allows an employer to deposit an employee's pay directly onto a prepaid Visa card that's been issued in the name of the employee.
"With UPPayCard, we are providing a service to our business customers as well as to their employees," said Kevin Leitten, senior vice president and director of commercial banking at Union Planters. "The employer saves time and money, associated with payroll administrative costs. Employees also benefit because they don't have to make a special trip to the bank to cash paychecks."
The UPPayCard was developed to help employers reduce costs associated paper checks as well as the re-issuance of replacement checks in cases of loss or theft. According to the American Payroll Association, the potential costs savings alone for lost paycheck replacement is estimated at $48 million annually.
Additionally, the new card offers businesses further benefits by providing a competitive tool to help recruit and retain employees. By providing the UPPayCard as a payroll option, businesses offer employees the flexibility to choose the best method to receive and use their pay.
"The new UPPayCard is the latest example of how we continue to provide innovative payment solutions and illustrates why Visa is truly the best way to pay and to be paid," said Todd Brockman, vice president of prepaid products for Visa U.S.A. "Union Planters Bank and Visa are providing a valuable business tool that can positively impact corporations' bottom lines while providing a significant benefit to their employees."
The card is ideal for employees who may not have traditional banking relationships, such as personal checking or savings accounts.
The UPPayCard eliminates the need for workers to wait in long lines at check-cashing centers and carry large amounts of cash, as cardholders can withdraw cash as needed from ATMs and use their card to shop wherever Visa is accepted- important conveniences that may have eluded this group of consumers. And since the UPPayCard is accepted online, it is helping to bridge the digital divide by allowing cardholders who have never owned a credit or debit card to engage in e-commerce.
For those living in a "cash and carry world," the UPPayCard can add tremendous value with significant security. The card is safer than carrying cash and can be replaced if lost or stolen, as all of Visa's consumer security protection policies apply to the UPPayCard, including its zero liability policy. Additionally, the UPPayCard is a valuable money-management tool as cardholders, using the Internet, can also more easily track their expenses using detailed monthly statements helping them to better manage their money. By using the new payroll card, employees may also become comfortable in establishing a broader relationship with Union Planters Bank and have the opportunity to benefit from a fuller range of banking services in the future, such as savings or checking accounts.