Jack Henry & Associates (JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, introduced today prepaid cards, a comprehensive solution that enables banks and credit unions to offer a high-demand financial product that generates new sources of non-interest income.
TransCard, the leading provider of prepaid products to financial institutions, will provide operational support and customizable marketing materials.
The company's Jack Henry Banking, ProfitStars, and Symitar®divisions will sell the solution that enables financial institutions to offer payroll cards, reloadable prepaid cards, and gift cards that generate additional revenue from commercial and retail customers, while attracting new customers from the underbanked and unbanked market segments. Banks and credit unions leveraging the solution hold the deposits, share in the interchange income, and set their own pricing, which generates cardholder fee income. The quick-to-market solution can be fully deployed in as little as 90 days.
Topeka, Kan.-based CoreFirst Bank & Trust had been investigating prepaid payroll solutions since its state statute changed to allow employers to use payroll cards as the alternative payment method to direct deposit. The bank elected to deploy the Jack Henry & Associates/TransCard solution to meet its market and customer demand.
Kim Rees, senior vice president and director of treasury management services for CoreFirst Bank, explained, "We needed to help our customers overcome the perception that business products like our prepaid payroll solution should be free. Thanks to the marketing and education materials provided, we have successfully launched the service and will be expanding our efforts in the beginning of 2013. At CoreFirst Bank, our customers rely on us to compete with the Wal-Mart's of the world, and ProfitStars, working together with TransCard, is making that happen."
According to David Foss, president of ProfitStars, "Today's banks and credit unions are competing against a variety of non-traditional providers of highly competitive financial products and services for both commercial and retail customers. Our new prepaid card solution enables financial institutions of all sizes to efficiently and aggressively compete with this high-demand offering which ultimately expands wallet share and improves customer loyalty. Through our partnership with TransCard, we have a proven solution for increasing deposits and fee income, while protecting the institution from cardholder fraud."