F OR MARITIME PAYROLL CARDS

Transcription

1 F OR MARITIME PAYROLL CARDS

2 Your Guidebook for Maritime Payroll Cards Why maritime payroll cards? Four Core Challenges of Maritime Payroll The Solution: Maritime Payroll Cards What is a payroll card? How do they work? Why maritime payroll cards? How Payroll Cards Benefit Maritime Companies How Payroll Cards Benefit Crewmembers What to Look for in a Maritime Payroll Card Solution About Brightwell Payments Sources

3 E XECUTIVE SUMMARY F OR MARITIME PAYROLL CARDS Payroll processing is costly and time consuming. When you add a global fleet, a mobile workforce, a traditionally cash-based payroll, compliance issues, and the logistics and security risks of paying employees whose office is on the high seas, you have a payroll process that s even more challenging and daunting. Maritime payroll cards offer a solution that helps maritime companies save money, save time, and minimize security risks while delivering the convenience of a streamlined payroll process. ECONOMICAL AND EFFICIENT, PAYROLL CARDS CAN BRING MARITIME CLIENTS AN ELECTRONIC PAYROLL SOLUTION THAT streamlines the payroll process cuts payroll costs minimizes security risks of a cash payroll complies with regulations combines the convenience of cash with the protection and flexibility of prepaid cards allows crewmembers to perform financial transactions from the ship 1

4 FOUR CORE CHALLENGES OF MARITIME PAYROLL Processing millions of dollars in payroll, across a mobile, global fleet, in multiple currencies, to crewmembers who live and support families in a variety of countries, all while securing cash reserves, managing exceptions, and meeting legal compliance requirements, make maritime payroll processing difficult, time consuming, and costly. 1 C ASH PAYROLL Maritime companies traditionally pay their crewmembers in cash and that s where the high costs of maritime payroll processing start. Companies face the relentless challenge of ensuring that they have enough cash onboard to meet payroll and that it s on the vessel and available to the crewmember on pay day, regardless of where the ship is operating. THAT LOGISTICAL FEAT INCLUDES: SHIPPING CASH TO VARIOUS PORTS SECURING CASH WHILE EN ROUTE MANAGING THE AMOUNT OF ONBOARD CASH RESERVES SAFEGUARDING THAT CASH AGAINST FRAUD AND THEFT On pay day, shipping companies must then process, distribute, and reconcile that pay, accurately and efficiently. And those companies that pay their crewmembers by check can add, on average, another $2.80* USD per check to those payroll costs. * The calculations performed to derive this value are based on industry averages of over thirty variables. Actual results may vary. 2

5 2 I NTERNATIONAL CREWMEMBERS Managing and paying a diverse and mobile workforce is a daunting task for maritime companies. Ships move all over the world and the crewmembers and their pay must travel with them. Once that pay is in crewmembers hands, crewmembers face their own set of maritime payroll challenges. How do they better manage finances and save money when ready cash is in their pockets? How do they get money home to their loved ones when they re sailing the seas? How can they take those first crucial steps to financial stability? And what are crewmembers options when their pay day cash is lost or stolen? 3 F RAUD AND THEFT Security is an issue for maritime payroll. From payroll logistics through pay day and beyond, fraud and theft are real risks for both maritime companies and their crewmembers. Maritime companies must not only maintain vigilant security to protect their cash from bank to vessel and on the ship, but those companies that pay with paper checks also have to contend with fraud, theft, stop payment costs, out-of-cycle checks, and escheatment processes. For crewmembers, carrying large amounts of cash is risky and any cash that s lost or stolen is gone, for good. 4 C OMPLIANCE Meeting compliance is yet another unique maritime payroll challenge. Maritime companies with ships that touch U.S. soil may be required to comply with the legal requirements established by the Merchant Marine Act of 1920 (Jones Act), which regulates maritime commerce in U.S. waters, as well as the Merchant Marine Act of 1915 (Seaman s Wage Act), which provides legal protection for workers at sea. 3

6 THE SOLUTION: MARITIME PAYROLL CARDS Transitioning maritime payroll from traditional cash and checks to prepaid cards helps maritime companies overcome these challenges, allowing them to: STREAMLINE THEIR PAYROLL PROCESSING REDUCE PAYROLL COSTS PROVIDE CREWMEMBERS WITH A SECURE AND FLEXIBLE PAY DAY ALTERNATIVE GET CASH AT ATMs WORLDWIDE SHOP IN-PERSON OR ONLINE PAYROLL PROCESSING FUNDS TRANSFER CREWMEMBER ACCOUNT SEND MONEY HOME WITH GLOBAL MONEY REMITTANCE PAY BILLS W HAT IS A PAYROLL CARD? An economical and efficient alternative to cash or check payments, payroll cards are reloadable, prepaid cards that are funded with the crewmember s pay. Payroll cards allow crewmembers even those without a bank account to access their wages on pay day, immediately and securely. H OW DO THEY WORK? On pay day, a crewmember s net pay is electronically deposited onto their payroll card, much like a direct deposit account. Maritime payroll cards are branded by one of the major card schemes and offer PIN-debit functionality. A payroll card is not a credit card and is not the same as having a bank account. Crewmembers can use their payroll cards just as they would a debit card, without check cashing fees or a bank account. 4

7 WHAT TO LOOK FOR: INTEGRATED MONEY REMITTANCE Best-of-breed payroll card providers offer an integrated global money remittance solution so crewmembers can send money home, to bank accounts or agent locations, without leaving the ship. This provides crewmembers increased convenience and security over the traditional cash-based method of withdrawing large sums of cash, carrying it into port, and sending through agent locations. W HY MARITIME PAYROLL CARDS? Economies worldwide are moving away from cash and checks toward the security and efficiency of electronic payments. Prepaid cards are a major part of our global payments system, offering convenience, security, and efficiency for consumer purchases and, increasingly, for payroll. In the payroll space, payroll cards save companies time and money, helping them better streamline payroll processing, manage their cash flow, and enhance security. Maritime companies enjoy the added benefits of reducing onboard cash reserves and eliminating the need for shoreside staff to send wires on behalf of crewmembers, all while providing crewmembers with a payroll solution that gives them more control and security over their pay. 5

8 HOW PAYROLL CARDS BENEFIT MARITIME COMPANIES Payroll cards help maritime companies combat the expense and logistical challenges of payroll processing. C UT PAYROLL COSTS Payroll cards decrease the administrative and logistical costs associated with maritime payroll, helping maritime companies save money, save time, and streamline operational efficiencies and account reconciliation. By issuing payroll cards instead of cash, maritime companies reduce the need to buy cash while in port and eliminate the expense of moving cash payroll to global fleets. S AVE TIME Issuing payroll cards is faster for companies and crewmembers. Industry leading payroll card providers offer free satellite communication to give maritime companies the tools they need to load, issue, and replace cards onboard and crewmembers the Internet connectivity to manage their accounts and transfer money online. I NCREASE SECURITY Payroll cards offer added security for both maritime companies and their crewmembers. Transitioning from cash to cards reduces the amount of cash maritime companies must stow onboard, further minimizing the security risks associated with onboard cash reserves. The cards themselves offer enhanced security features. Chip and PIN (Personal Identification Number) cards prevent counterfeits and uniquely identify the cardholder to prevent unauthorized use. Some payroll cards are flat printed versus embossed to further protect against fraud. D ELIVER CONTROL AND FLEXIBILITY With payroll cards, maritime companies give their crewmembers control over their finances. Funds are available immediately on pay day, and crewmembers can shop, pay bills, and wire money home or anywhere in the world, without ever leaving the ship. Crewmembers can also track their spending online and even set up automatic account alerts. 6

9 WHAT TO LOOK FOR: INTEGRATED SATELLITE COMMUNICATION Best-of-breed payroll card providers partner with satellite communication companies to provide crewmembers with free Internet access to manage their accounts online, transfer money, and receive cardholder support while at sea. PAYROLL CARDS: MORE BENEFITS FOR MARITIME COMPANIES REDUCE CASH RESERVES & SIMPLIFY PAYROLL OPERATIONS SIGNIFICANTLY REDUCE PAYROLL COSTS INCREASE PROCESSING EFFICIENCIES REDUCE SHIP CASH RESERVES INCREASE PAYROLL SECURITY ISSUE CARDS IN MULTIPLE CURRENCIES ENROLL CREWMEMBERS IMMEDIATELY INSTANTLY ISSUE AND/OR PRINT PAYCARDS ONBOARD DELIVER PAY ON TIME REDUCE HUMAN ERROR IN PAYROLL DELIVERY PROCESS AVOID RISK OF CREWMEMBERS CARRYING LARGE AMOUNTS OF CASH MINIMIZE FRAUD LOSSES AND THEFT INTEGRATED GLOBAL MONEY REMITTANCE SOLUTION IMPROVE CREWMEMBER RETENTION BOOST SUSTAINABILITY EFFORTS CARDS ARE BRANDED BY ONE OF THE MAJOR CARD SCHEMES AND OFFER PIN-DEBIT FUNCTIONALITY 7

10 HOW PAYROLL CARDS BENEFIT CREWMEMBERS For crewmembers, payroll cards provide enhanced security, savings, and convenience giving them added flexibility and control over their money even when they re at sea and far away from home. P ROTECT PAY Safer than cash stowed onboard or stuffed in pockets, payroll cards can be replaced if lost or stolen. Moreover, the cards themselves are equipped with enhanced security features. Chip and PIN-enabled cards prevent counterfeits and uniquely identify the cardholder to prevent unauthorized use. Many payroll cards offer zero liability protection from the major card schemes and payroll card accounts that are issued through U.S. banks are FDIC insured up to $250,000. S AVE MONEY Payroll cards help crewmembers save money with reduced rates on wire transfers and currency exchange. In addition, some payroll card providers offer companion cards, which let family and loved ones access the money on the payroll card without the expense of a wire transfer. I NCREASE CONVENIENCE Not only do crewmembers receive immediate access to their wages on pay day, but with payroll cards, they can shop and send money home, without ever leaving the ship. With a direct satellite connection, and integrated bank-like functionality, crewmembers can manage their accounts onboard, instead of spending their free time in ports handling their banking needs. With integrated global remittance services, crewmembers have the added ability to transfer money globally, without leaving the ship. With integrated global money remittance services, crewmembers have the added ability to transfer money globally while onboard. M ANAGE FINANCES Personalized web access lets crewmembers manage their card funds 24/7 from any Internet-connected device. Select payroll card solutions allow crewmembers to track their spending, online or through a mobile app, and even set up automatic account alerts. 8

11 WHAT TO LOOK FOR: COMPANION CARDS Best-of-breed payroll card providers offer companion cards. These cards are linked to the crewmember s account, giving family back at home access to the money on the payroll card without the expense of a wire transfer. PAYROLL CARDS: MORE BENEFITS FOR CREWMEMBERS SAVE MONEY, SAVE TIME, SECURE PAY IMMEDIATELY ACCESS FUNDS IN MULTIPLE CURRENCIES GET CASH AT ATMs WORLDWIDE SAVE MONEY ON CURRENCY EXCHANGE AND WIRE TRANSFERS MANAGE MONEY WITH ALERTS REPLACE LOST OR STOLEN CARDS SHOP AND WIRE MONEY HOME, WITHOUT EVER LEAVING THE SHIP MINIMIZE THEFT AND FRAUD MANAGE MONEY WITH ALERTS AND MOBILE APP RECEIVE COMPANION CARD FOR FAMILY 24/7 CARDHOLDER SUPPORT GLOBAL ACCEPTANCE, USE EVERYWHERE CARD SCHEME IS ACCEPTED ONLINE ACCOUNT ACCESS 9

12 WHAT TO LOOK FOR: IN A MARITIME PAYROLL CARD SOLUTION Payroll cards can save your company money and time, provide enhanced security over cash payroll, and add value and convenience for your crewmembers. Payroll card programs vary widely in their features, costs, convenience, and cardholder protections. Whether a particular payroll card program will work well for you and your crewmembers depends on the details of the payroll card program you choose. Here are some features and benefits you may want to consider when choosing a payroll card program for your company and crewmembers. BEST PRACTICE CHECKLIST PROVEN MARITIME EXPERIENCE Comprehensive cardholder adoption plan derived from years of maritime experience Compliance with maritime legal requirements OPERATIONAL EFFICIENCIES Onboard card printing and encoding capabilities Satellite communication partnerships Integrated money remittance Issue and settle in multiple currencies SATELLITE COMMUNICATION Free internet connectivity to allow crewmembers to manage their accounts online and onboard Direct connection with onboard satellite communication provider for program and printer connection, and cardholder support SECURITY Encryption technology and password protection to ensure all information is safe and confidential Chip and PIN-enabled cards Flat printed cards CREWMEMBER SUPPORT Online account access and money remittance capabilities onboard the ship 24/7 cardholder support online and phone Enrollment and education materials Companion card Money management tools Global POS acceptance Foreign currency exchange PROGRAM SUPPORT Comprehensive enrollment and launch materials Ongoing support 10

13 ABOUT BRIGHTWELL PAYMENTS A Guidebook for Maritime Payroll Cards was developed and written by Brightwell Payments, a payments company offering comprehensive prepaid solutions for corporations and consumers. Brightwell Payments international maritime paycard program, OceanPay, is a proprietary, comprehensive prepaid card solution designed to mitigate the unique challenges and concerns of existing payroll processes faced by the maritime industry. The turnkey solution provides currency exchange and onboard money remittance services, companion cards, and onboard card encoding and printing. The OceanPay program is currently offered on more than 200 ships worldwide. As an alternative to cash or check payroll distribution, the award-winning OceanPay solution reduces payroll costs and onboard cash reserves, simplifies your payroll process, and allows companies to pay their crewmembers faster, easier and safer. Selected as the 2011 Paybefore Awards Best in Category winner for the Most Effective Prepaid Solution, OceanPay is cited for its exceptional creativity and thoughtfulness in using prepaid to solve real world payment issues and provide outstanding convenience, safety, and control. To learn more about Brightwell Payments and OceanPay maritime paycard programs, visit For more information, contact: NORTH AMERICA Marie Torbiak +1 (305) (404) mtorbiak@brightwellpayments.com EUROPE & ASIA Helen Child +44 (0) hchild@brightwellpayments.com SOURCES Cocheo, Steve. "ABA PREPAID ROUNDTABLE: Navigating Prepaid s Compliance Challenges." ABA PREPAID ROUNDTABLE: Navigating Prepaid s Compliance Challenges. ABA Banking Journal, 18 May Web. 7 June Cocheo, Steve. "ABA PREPAID ROUNDTABLE: Prepaid s Powerful Potential." ABA PREPAID ROUNDTABLE: Prepaid s Powerful Potential. ABA Banking Journal, 18 May Web. 7 June Goins, Jr., Kenneth. Prepaid Cards Hit the High Seas: Providing Convenience to Employees, Reducing Fraud and Enhancing Security on Ships. Industry Interviews. Network Branded Prepaid Card Association. Web. 7 June Hauben, Arlene. "Prepaid Cards for Specific Uses." The Prepaid Press. The Prepaid Press, 1 May Web. 15 June Hillebrand, Gail. "Payroll Cards: Issues for Employers." Payroll Cards: Issues for Employers. Consumers Union of the United States, Inc., Oct Web. 7 June "Payroll Card APA Visa Paycard Portal." Payroll Card. American Payroll Association, n.d. Web. 10 June "Prepaid Solutions' Maritime Payroll Product Travelex OceanPay Named 'Best in Category' in Fifth Annual Paybefore Awards - Pymnts.com." Prepaid Solutions' Maritime Payroll Product Travelex OceanPay Named 'Best in Category' in Fifth Annual Paybefore Awards. Pymnts.com, May Web. 7 June