Products February 11, 2004

Aon to Distribute Payroll Deduction "Credit Card"

November 26, 2002 (PLANSPONSOR.com) - Aon clients will now have the option of offering employees a way to pay for products and services via an interest-free payroll deduction program.

Reported by

Fred Schneyer

That’s because of a new agreement between Aon and E-Duction to make available E-Duction’s Clear payroll deduction card.

According to a media release, employees can use the card anywhere MasterCard is accepted to buy products or services.

According to the announcement, merchants process the Clear card as they would a credit card. The worker can pay for the purchases through paycheck deductions interest free over two months.

The announcement said a typical employee earning $40,000 a year receives a Clear credit line of 2.5% of their annual salary, or $1,000.

If the employee pays for a $400 emergency auto repair using Clear, $100 is deducted from their bi-weekly pay for the next four pay periods, the announcement explained.