New Program Links Savings Accounts, Payroll Cards

September 28

FSV Payment Systems Inc. last week unveiled a new program that makes savings accounts available to folks whose employers pay them via MasterCard and Visa prepaid cards. checks for their unbanked employees.

FSV is a 10-year-old Houston company that offers “branded” prepaid card programs for payroll, rebates, loyalty, gift and healthcare, among other sectors. The company's PaychekPLUS! program is offered through resellers, such as financial institutions. (Branded in this context refers to MasterCard and Visa brand cards.)

FSV says it has agreements with three banks now using the company's program to add savings account functionality. Cardholders will are being offered totally free interest-bearing savings accounts (that can be opened online or by telephone) for an initial deposit of just $10. They can even arrange for auto-transfers from their card to savings accounts.

Jonathan Palmer, a long-time veteran of the retail payments space and FSV's President and CEO, describes the addition of savings capabilities makes PaychekPLUS! re-loadable MasterCard and Visa cards the next best thing to a bank account.

“Cardholders gain a smart way to save – whether it's to make sure they'll have funds from the first check of the month to help pay the rent at the end of the month, or they plan to tuck away a little cash each payday for holiday gifts or a trip,” Palmer said. “With the addition of savings to the many services we already offer – like bill pay, a convenient line of credit, international money transfer, online account management and text alerts, it's like having a bank on a card,” he added.

2.5 billion adults, just over half the world's adult population, do not use financial services to save or borrow

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