Visa and banks unveil payroll card
UFB.....J6P never saw it coming..........
NEW YORK, July 24 (Reuters) - Credit card network Visa U.S.A and five
banks said on Tuesday they were launching a payroll card that would allow
employers to deposit salaries directly onto Visa cards, making a bid for the
multibillion check cashing business.
The initiative, aimed at tapping into the estimated 12 million
to 15 million households that do not have a bank or credit
card account, is spearheaded by Bank of America Corp.
(NYSE:BAC - news), Bank One Corp.(NYSE:ONE - news),
First Tennessee National Corp.(NYSE:FTN - news),
FleetBoston Financial Corp.(NYSE:FBF - news) and U.S.
Bancorp(NYSE:USB - news).
The initiative would also allow these people, known in the
industry as the unbanked, to shop online, Visa said.
The unbanked spend about $8 billion a year in check cashing
and other service fees, Visa said. Firms that cash checks for
people who do not have bank accounts usually charge 2
percent to 3 percent of the value of the check cashed, according to the Financial Service Centers of
America, a check-cashers trade group.
There are about 6,000 check-cashers in the United States. They cash about 180 million checks annually
worth about $55 billion, FiSCA said. |
