TITLE
Recommendation to authorize City Manager, or designee, to execute an agreement, and all necessary documents, with NetSpend Corporation, of Alpharetta, GA, for payroll debit card services, at no cost, for a period of three years, with the option to renew for seven one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into an agreement with NetSpend Corporation (NetSpend) for payroll debit card services. City staff recommends replacing City-printed physical payroll checks with reloadable payroll debit cards utilizing NetSpend’s services. This change adds one more step in advancing the City’s use of modern, efficient technology, and will benefit both the employee and the City.
Direct deposit, which is currently used by most employees, and payroll debit cards are the much better methods to pay employees. Payroll cards will perform similarly to bank debit cards. Direct deposit and payroll debit cards offer employees greater security, faster and more reliable access to funds, and help avoid potential loss and the delivery risks associated with natural disasters. Checks expose employees to delayed access to cash, potential check cashing fees, and possible check fraud and check loss.
During emergency or disaster situations, physical check distribution may not be possible or may be delayed. Employees have greater assurance of receiving payment and having access to payroll funds through direct deposit and payroll debit cards versus the delivery and cashing of a physical check. In addition, the payroll card will provide some efficiencies and administrative cost-savings. Payroll card holders and users of direct deposit will have the same timely access to their funds, and receive the same payment advises. Both direct deposit and payroll cards will be credited through a secure automated process each payroll period. The majority of City employees already receive payroll payments via direct ...
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