PAY CARDSPAY CARDS

STATE OF MISSOURISTATE OF MISSOURIOFFICE OF ADMINISTRATIONOFFICE OF ADMINISTRATION

DIVISION OF ACCOUNTINGDIVISION OF ACCOUNTING

LIBBIE FARRELLLIBBIE FARRELL

Reasons for Pay CardsReasons for Pay Cards

Mandatory Direct Deposit as a Condition Mandatory Direct Deposit as a Condition of Employment—Implemented 1/1/08 of Employment—Implemented 1/1/08 – Change to Code of State RegulationsChange to Code of State Regulations– Revision of Statewide PolicyRevision of Statewide Policy– Excludes Seasonal/Temporary employees Excludes Seasonal/Temporary employees

Less than three months of employmentLess than three months of employment

Un-bankable employeesUn-bankable employees Employees refuse to provide checking Employees refuse to provide checking

or savings account informationor savings account information

OptionsOptions

Bid Process Bid Process – Only one Pay card type Only one Pay card type

availableavailable Utilize current banking Utilize current banking

contractscontracts– Employee decides which Employee decides which

meets their needsmeets their needs

ProcessProcess

Employee completes applicationEmployee completes application Central HR staff enters into bank’s systemCentral HR staff enters into bank’s system Bank issues cards & mails directly to Bank issues cards & mails directly to

employeeemployee Bank sends interface file to us with Bank sends interface file to us with

employee’s banking informationemployee’s banking information Able to bypass prenote processAble to bypass prenote process Employee must activate card to gain access Employee must activate card to gain access

to funds.to funds. Short window of time to enter applications Short window of time to enter applications

between pay cyclesbetween pay cycles

DifferencesDifferences

Bank “A”Bank “A”– We receive a list of card numbersWe receive a list of card numbers– Enter employee information via webEnter employee information via web– Card number is the account numberCard number is the account number– If the employee does not receive cardIf the employee does not receive card

Overnight new cardOvernight new card Issue a check Issue a check Transfer funds to another accountTransfer funds to another account

DifferencesDifferences

Bank “B”Bank “B”– Enter employee information via webEnter employee information via web– Issue card with account number and mail Issue card with account number and mail

directly to employeedirectly to employee– Issue account number which is banking Issue account number which is banking

information used by State of Missouriinformation used by State of Missouri– Account number does not change if card is Account number does not change if card is

replaced.replaced.– TranscheckTranscheck®® available if card is not available if card is not

receivedreceived

Problems EncounteredProblems Encountered

Delivery of the cardsDelivery of the cards– Mail delayed for Christmas SeasonMail delayed for Christmas Season– One bank would not deliver to P O BoxOne bank would not deliver to P O Box– P O Box delivery takes longerP O Box delivery takes longer– Mail delivered to undesirable neighborhoodsMail delivered to undesirable neighborhoods– Employee not having a permanent addressEmployee not having a permanent address– Employee throws away – junk mailEmployee throws away – junk mail– State of MO does not require address to be State of MO does not require address to be

same as one on payroll file.same as one on payroll file. Employee submits multiple applicationsEmployee submits multiple applications

StatisticsStatistics

Approximately 63,000 State employeesApproximately 63,000 State employees Prior to policy change, we had over 4,000 Prior to policy change, we had over 4,000

paper checks issued each pay periodpaper checks issued each pay period January 15, 2008 1500 paper checksJanuary 15, 2008 1500 paper checks 850 pay cards issued within two months850 pay cards issued within two months By March 14, 2008 pay date, we are at By March 14, 2008 pay date, we are at

97.6% participation for direct deposit and 97.6% participation for direct deposit and paycards combined.paycards combined.

Questions ??????Questions ??????