Greater than 25% of U.S. Households are un-banked (no checking or savings account) or under-banked (a household member has a bank account, but still rely on alternative financial solutions such as check cashing agencies, payday loans, pawn shops, etc.). These non-bank establishments collect over $8.5 billion in fees from their customers annually.  Of those non-bank or alternative financial solutions, none are utilized more than check cashing agencies.We have visited several check cashing locations to compare costs to customers.·         We found the average rate to cash a check to be 3%.
($1 on $25 (4%), $1.50 on $50 (3%) then it leveled out at 3%.)

·         Requirements varied, but most ask for a # of forms of identification,
and may require calls to employers.

·         They then suggest that the money be put on a debit card which cost $4.95 or higher.

·         There is a charge to load the card.  This varied widely by site but the norm was $2.00

·         A reload is $2.00 and there are charges for everything – purchases, withdraws, transfers, etc.

The average WC lost time claim has 10 indemnity payments at approximately $1,000/payment.  For the unbanked, using a check cashing agent, conservative costs are as follows:

·         10 check-cashing fees @ 3% = $300

·         Prepaid Card = $5

·         9 reloads = $18

·         2 ATM withdrawals/week for 20 weeks = $80

·         5 purchases using prepaid card/week for 20 weeks = $200

In most states, injured workers receive indemnity benefits equal to 2/3 of their Average Weekly Wage.  The unbanked injured worker, on a typical lost time claim, loses an additional $600.

InsurCard eliminates those costs to unbanked & underbanked injured workers.  No costs for loads, no costs for ATM transactions, no costs for cash advances, no costs for purchases.

• FDIC National Survey of Unbanked and Underbanked Households – December 2009
• Federal Reserve 2010 Electronic Payments Study