Under this new offering, retirement plan participants may elect to have their distributions made via debit card instead of a traditional check. The company said it believes the debit card option to be the future of benefit processing. Debit cards are safer, more secure, more portable, more convenient, and may provide important benefits to a potential audience of millions of people with limited or no banking relationships, a press release said.
The solution will address the massive unbanked and under-banked consumer demographic-people for whom credit cards are not an option. Millions of such individuals: 1) cannot conduct transactions requiring credit cards (including most Internet-based transactions), 2) are more likely to lose their paychecks and, 3) because they’re forced to carry cash, are more likely to become victims of crime and pay high fees for check-cashing services, the announcement noted. This debit card product offers a portable, reloadable, and more secure way for these consumers to transact every day purchases.Additionally, the recipients of retirement distributions via PenChecks’ debit card program may elect to convert the proceeds to cash, to a paper check, or deposit funds to a rollover IRA. Through a toll-free customer service feature, card holders can easily check balances, transfer money to a checking account, or deactivate and replace a lost or stolen card. Additionally, these debit cards are reloadable and may also be setup to receive payroll deposits.