First United Bank and ITS collaborate to issue payroll cards

Durant December 23, 2008 03:12 pm

— First United Bank banking centers throughout Southeastern Oklahoma and North Texas began delivering prepaid payroll card services to unbanked and immigrant employees of commercial customers in their area. First United is providing these services through an agreement recently negotiated with Interactive Transaction Services (ITS), a transaction processing subsidiary of Central National Bank of Enid.
“We believe prepaid payroll cards provide our commercial customers’ employees a great alternative to receiving a traditional check,” said Carroll Monden, Vice President of First United Bank. “Accepted at any Visa® Merchant or ATM, these cards provide all of the convenience of cash without the risk and expense of cashing a checks,” Monden said.
Monden said First United Bank is fully committed to serving the needs of all of its customers, including individuals who are typically unbanked and underserved by the financial world. Headquartered in Durant, First United Bank’s offering the ITS payroll card make it the latest U.S. financial institution to partner with Central National Bank and ITS.
“Providing innovative services and making banking more accessible is a main focus for First United Bank,” Monden said.
“Financial institutions can “drop-in” the ITS agent bank payroll, remittance or gift card programs quickly and with little effort on their part,” said Brud Baker, president and CEO of Central National Bank. “Additionally, for those financial institutions wanting to enter the prepaid card market, these programs create a great new revenue stream.”
“ITS prepaid card programs for agent banks are uniquely flexible, cost-effective and turn-key,” Baker said. “ITS and Central National Bank issue and process the cards, manage compliance end to end, provide collection, distribution, settlement services, and other complex operational requirements. Financial institutions can feel secure in dealing directly with us as their “one stop” supplier.”
As a functioning reloadable debit card, the ITS Visa® Payroll Card is truly international, with built-in features that allow cardholders to send money to family members in Mexico and 13 other Latin American and Caribbean countries at a price of $6. This is far less than the national average. The card is loaded by the employer through traditional ACH Payroll Direct Deposit files submitted to First United, or can be loaded at the bank’s branch locations. In addition to being used as a remittance card, it can be used to make purchases at any merchant where Visa® Debit Cards are accepted, to withdraw cash at ATMs, and to make international phone calls.
“Providing innovative services and making banking more accessible is a main focus for First United Bank,” Monden said. “With these new products, employees are able to avoid check cashing lines and high wire transfer and check cashing charges. Our commercial customers will benefit by being able to reduce payroll processing costs, lost time, and potential check fraud.”
Monden continued, “First United Bank is happy to be associated with ITS to provide payroll cards that will benefit both our customers and potential customers. We see this as a great opportunity to provide better service all around and are proud to be one of the first banks in our area to emphasize products that address needs for current customers, as well as individuals who don’t typically use banks.”
In addition to the ITS Visa® Payroll Card, First United Bank will market the ITS Mi Conección Card. This card has several exciting new features similar to the payroll cards. Both cards are covered by FDIC insurance at the cardholder level.