If you are a business owner who used direct deposit paycards as a way to pay employees, there is big news shaking up the industry for you to be aware of.
According to a report by the ABA Banking Journal, MasterCard has released new standards to help employees take full advantage of the benefits of payroll card programs. These will require anyone offering this option to provide greater transparency on fees and educational resources. On top of that, there must be a free way for users to check their balance.
"Payroll cards serve as one way to bring the traditionally underserved into the financial mainstream," Ron Hynes, group executive, Global Prepaid Solutions, MasterCard, told the news source. "These standards will help ensure that employees not only understand the choices available, but allow them to take advantage of benefits like direct deposit, online shopping, and bill payment that had not been traditionally available to them."
These new standards, which will go into effect on July 1. 2014 for new programs or October 1 for existing ones, were developed with the new standards in consultation with the customers and partners. Discussions were held over a six month period.
Other things addressed in the new standards include:
- Improve the choices for employ payment options
- Full paychecks available for free at least one per pay period
- Online or mobile access to balance information
- Zero liability guarantee
- Consumer education
With the help of a payment solution provider that understands payroll card systems, any organization can be sure it is following all standards and requirements needed for success.