Discover and First Data Team Up on Payroll Cards

Discover Financial Services announced an agreement with First Data Corp., to issue Discover Network payroll cards provided by Money Network Financial, LLC, a First Data Company. Money Network will issue Discover Network branded payroll cards and handle card administration.

The Discover Network payroll card by Money Network program provides a smart alternative to paper paychecks including card applications typically not offered by other prepaid card brands. The payroll cards offer underbanked consumers diverse financial management tools including instant-issue prepaid debit card use, check writing capabilities via Money Network(TM) Checks, access to a large network of ATMs, direct deposit and pay-to-the-penny payroll services, and money transfers from the United States to Mexico and Latin America.

With instant-issuing capabilities, employers can issue Discover Network branded cards to employees who may not have traditional banking relationships. This feature also is beneficial when delivering bonuses, commissions and special incentives. Discover Network payroll cards provide a 100 percent authorization requirement, which further reduces fraud risks and costs for issuers. In addition to the convenience of immediate access to funds, Discover Network payroll cardholders can check account balances in the authorization messages on their sales receipts after every signature-based purchase.

"Companies are quickly realizing that payroll card programs are a safe, convenient and cost-effective way for both employers and employees to significantly reduce the costs associated with the payroll process," said Tom Crowder, director of strategic development and general manager of prepaid products for Discover Financial Services. "Through our agreement with Money Network, Discover Network can further extend its reach into the rapidly growing payroll card market. We also are strengthening our relationship with First Data, which already offers Discover Network card acceptance as part of its integrated service to small- and medium-sized merchants."

According to the American Payroll Association, it costs between $1 and $2 to process, print and deliver a single paycheck and about $9 to replace it. Additional expenses often include postage or courier fees to distribute paychecks, as well as the cost of tracking and accounting for paychecks once they’re issued.