The Sage Payroll PayCardCost-effective. Secure. Smart

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Agenda

• Positioning– What do we tell your customers

• What’s in it for you– Benefits– Revenue example

• What you need to do• The process• Roadmap• Q & A

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What is the Sage Payroll PayCard?

Pre-paid debit card

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Main benefits

• Good for the company– Saving cost– Hassle free– Happy employees – great service

• Good for the employees– No checks to cash– Direct access to funds– Safe– All the benefits of a Visa debit card, but without a bank

account

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Typical timeframe 10-14 days

Employee Enrollment timeline

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Employer website

http://www.sagepayrollpaycard.com/

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• User friendly site• Easy enrollment• Informational report

Enrollment and reporting

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Benefits to Employers

• Cost reduction• Paperless payroll – going “green”• No hassle

– No lost or stolen checks– Minimizes exposure to check fraud– Eliminates check reconciliation process– Eliminates check distribution costs– Eliminates escheatment liability

• Works with both Abra Payroll and Compupay• Not responsible for cardholder issues• No financial liability for cardholder activity

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Costs of Issuing Payroll Checks

What is it costing your company?• Costs to issue a stop payment and

replace a lost check• Transportation costs • Cost to deliver checks• Decreased HR/payroll personnel

productivity

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Case Study

Business Challenge:

• 5 job sites

• Employs 300 workers - 50% receiving paper paychecks

• Weekly pay period with paychecks being delivered to each job site

• Supervisors at each site are required to be available to distribute checks over a 3 hour period

• Frequently company vans are used to transport workers to cash their checks resulting in lost productivity and cost of gas

• 25 checks were lost or stolen last year

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Weekly Payroll Costs Current Weekly Costs 100% Direct Deposit

150 payroll checks $ .45 per check = $67.50

N/A

5 overnight delivery fees 5 sites @ $20 - $100 N/A

Lost EE productivity $15/hr x 150 = $2,250 N/A

Cost of co vehicles 5 vehicles x $5 = $25 N/A

1 stop payment $10 per stop = $10 N/A

1 check reissue $9 per reissue = $9 N/A

Payroll admin for check reissues

$15/hr x 1 hr = $15 N/A

Postage to mail check stubs

N/A $170.00

Cost of Sage PayCard @ $10/month

N/A $2.31

Weekly Cost $2,476.50 $172.31

$128,778 savings per year!Case Study

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Employer Calculator

We can work with you to calculate the savings for your company.

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Benefits to Employees

• No check cashing• No bank account or credit check required• Immediate access on payday• Safer than carrying cash • Convenient• Employee owns the card• Allpoint ATM Network – over 37,000 surcharge-

free ATM locations worldwide at www.allpointnetwork.com

• Up to 3 secondary cards available

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• Quick and easy to use web portal

• Secure login• Card number• Last 4 digits of SSN• Security code

• Available 24/7

Employee Web portal

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Cardholder Fees

One-time enrollment / per employee $2.00

Secondary card enrollment (Spouse, family member, etc.)

$5.00

Monthly Maintenance Fee $2.25

One-time Enrollment Fees

Monthly Fees

Charged directly to the employee. In some cases, the employer will choose to pay these fees, which can be treated as a post-tax contribution.

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OTC cash withdrawal fee (1 FREE every payroll load, otherwise $3.50)

FREE

24/7 customer support FREEPayroll load FREEOnline bill pay FREEPOS transaction for amount of purchase FREE (credit option – signature

required)Lost/stolen card replacement FREE (3-5 business day turnaround)Account overdraft NO CHARGECash back with purchase $.50 (debit option – PIN-based)ATM withdrawal fee (AllPoint Network) $2.00 – domestic / $3.50 –

internationalATM balance inquiry fee $.50ATM decline $.50

Express delivery of card $25 (card replacements)Optional paper statement $2 per statement mailedForeign exchange processing 2% of transaction amount – outside

US

Transaction Fees

Other Fees

Cardholder Fees

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Check Cashing/Spending Comparison (4 Paychecks/Month)

Payroll Fees Major Retailer Check Cashing

National Check Cashing Store

Sage Payroll PayCard

Cash one paycheck @$350 per week – x4

$12.00 $36.40 One FREE per payroll load

Money orders/bill pay

$2.30 Free Free online bill pay

Postage to mail bills $2.10 $2.10 $0.00

Monthly service charge

N/A N/A $2.25

Signature purchases N/A N/A Free - unlimited

3 purchases w/cash back

N/A N/A $1.50

ATM withdrawal (Allpoint Network)

N/A N/A $2.00

Visa Zero Liability Protection

N/A N/A Yes

Total $16.40 $38.50 $5.75

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Cardholder Average Monthly SavingsMany employees can save as much as $500 annually in check cashing fees.

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Positioning the Payroll Card Program

– Make It Mandatory• Direct deposit is a condition of employment

• Offer employees choice of direct deposit or payroll debit card

– Voluntary - Direct Deposit is “Preferred by the Company” • Offer the Sage Payroll PayCard as “a new and better way to get

your pay”

• Include paper paychecks as a discouraged option

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Employer Support

• Dedicated Account Manager• Communication materials for employees

– Promotional introductory letters– Setup forms– Posters– Email content– Paycheck stuffers– FAQs

• Employer Materials– Online training– Website guide– Quick reference guides– Implementation guide– Easy-to-use website portal

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Marketing materials

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Sage Payroll Paycard fees

• Employer Fees

– One Time Set Up Fee $50.00 –– Monthly Employer Maintenance Fee $10.00 – One-time employee card enrollment $2.00

• Fall 2010 PROMOTION: Fees above are WAIVED IF ENROLLED BY ….

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What’s in it for you

• Recurring revenue• $1.00/card/month• Happy customers• Increased ‘stickiness’

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What you need to do

• Almost nothing• Inform your customer• Answer some questions• Start collecting money

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The Process

• Leads– New & Existing Clients– Webcasts

• Opportunity Management– Resources

• Sage & Motivano

• Placing Orders– Order Form– Underwriting Guidelines

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Roadmap: more good stuff to come

• “Instacards”: one time instant usage• In-product connected service

– Batch processing– ROI calculator

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Questions?