($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.
SOURCES:
• FDIC National Survey of Unbanked and Underbanked Households – December 2009
• Federal Reserve 2010 Electronic Payments Study