Guidance for Card Issuers & Employers to Support Employees
Developed in Consultation with Community Organizations
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PURCHASE, N.Y.--(BUSINESS WIRE)--
(NYSE:MA) today released new standards designed to help employees take
full advantage of the benefits of having their paycheck electronically
deposited onto payroll cards.
The payroll card standards require employers and payroll card providers
to offer cardholders greater insight on these programs through
educational resources and increased transparency of any fees.
Additionally, the standards ensure the employee has a fee-free way to
access their pay and check available balances.
"Payroll cards serve as one way to bring the traditionally underserved
into the financial mainstream," said Ron Hynes, group executive, Global
Prepaid Solutions, MasterCard. "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 have not been traditionally available to them."
MasterCard developed the new standards in consultation with its
customers and partners, as well as community organizations through its Master
Your Card and Master
Your Card: Oportunidad public education programs. In the course
of this six-month process, the collective group worked with a wide
variety of community organizations-- ranging from national Latino,
African American and Labor groups to local community groups who
represent a high percentage of members who are financially underserved.
"MasterCard has been an important partner in our efforts to create
guidelines for financial products that are a force for good in people's
lives," said Jennifer Tescher, president and CEO of the Center for
Financial Services Innovation (CFSI). "We salute the company's
leadership in setting standards to promote a high-quality payroll card
market. Quality payroll cards provide security, convenience and
inclusion and can help consumers improve their financial health."
All new MasterCard payroll card programs will need to meet these
standards as of July 1, 2014. Existing programs will have until October
1, 2014 to make any necessary adjustments.
The MasterCard payroll card standards address:
- Choice - Employees can choose how they are paid - card, direct
deposit or other means, as required by law
- Full Pay - Payroll cardholders can access their full pay for
free at least once per pay period
- Free Access - Free and easy access to account balance
information online or via mobile
- Peace of Mind - Coverage by MasterCard's Zero Liability
guarantee against fraudulent use and the ability to freeze a lost or
stolen card and have funds reissued on a new card
- Simple Disclosure - A new, easy-to-read disclosure table will
outline the services and fees associated with the card
- Consumer Education - Payroll providers must provide employers
and their employees with resources to help them understand the
features and benefits of their payroll card, such as MasterCard's Your
Money Smarter program
"As the son of working class parents, I know first-hand that every
dollar counts for working families," said Fabian Nuñez, chair of
Oportunidad's Advisory Board and former speaker of the California
Assembly. "We have a collective interest in making sure prepaid payroll
cards are implemented in a way that maximizes benefits for workers. I
applaud MasterCard for not only listening, but including input from
multiple groups in establishing these standards."
MasterCard (NYSE:MA), www.mastercard.com, is
a technology company in the global payments industry. We operate the
world's fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in more
than 210 countries and territories. MasterCard's products and solutions
make everyday commerce activities - such as shopping, traveling, running
a business and managing finances - easier, more secure and more
efficient for everyone. Follow us on Twitter @MasterCardNews, join
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Master Your Card is a public education program by
MasterCard® that educates consumers, small businesses and
state and local governments about how to get more from their money using
prepaid, debit and credit cards - access points to the economically
empowering electronic payments network. For more information about Master
Your Card, visit http://masteryourcardusa.org.
Master Your Card: Oportunidad is a coalition that aims to
help the Latino community understand the full value of electronic
payment technology to promote upward mobility and further financial
inclusion for families and small businesses in the United States. For
more information about Master Your Card: Oportunidad, visit http://oportunidad.masteryourcardusa.org.