Prepaid Solutions Can Improve the Lives of The Military, Veterans, and Their Families
Supporting the Canadian Armed Forces and their families is something every Canadian can get behind. One way to improve the lives of our men and women in the military is through the use of prepaid cards. Instead of dealing with the hassle and insecurity of cheques, service members, veterans, and their families can enjoy this safe and cost-effective solution that has been specifically developed for government agencies.
How can prepaid cards make a difference?
Manage Your Finances and Eliminate Debts
In 2015, the Consumer Financial Protection Bureau (CFPB) received 19,000 complaints from the military community. Debt collection (for loans, credit cards, lines of credit, etc.) is a major issue for service members, veterans, and their families, making up 46 percent of all military complaints, nearly double the rate of the general population. Conversely, prepaid made up only 1 percent of all complaints from the military community.
Military members who find themselves in dire financial straits may see their career suffer as a result. While debt collectors are not legally allowed to contact your commanding office, there are multiple instances in which they have done so, and having negative information on your credit report may indirectly lead to loss of security clearance.
Manage Your Money: With prepaid cards, you can set limits to manage your finances. In a 2015 survey titled “How Canadians Pay Today,” it was revealed that a whopping 82 percent of Canadians want payment cards that avoid overdraft fees, NSF fees, and interest fees. 40 percent of Canadians want a payment card with a set spending limit to help them stick to a budget.
Reduce Fraud for Military
According to the study conducted by the CFPB, over 12 percent of all complaints were related to fraud, identity theft, scams, and incorrect credit reports. Many service members complain that they return home from deployment or temporary duty to find fraudulent activity on their credit report.
Safe & Secure: Prepaid solutions drastically cut down on the potential for fraud, and completely eliminate the potential for cheque fraud. We have a multi-layered security backed by network purchase protections. Reloadable cards issued by federally regulated financial institutions (FRFI) that are payment network branded are covered by a “zero liability” feature.
Special Circumstances Require a Special Service
The life of a service member is ever-changing—shouldn’t the way they handle their finances reflect that? Service members may require expense cards while on duty or temporary duty, to help with a move, or in times of emergency. It can take a long time for a cheque to be issued, mailed, and then cashed or deposited at a bank.
Streamlined Process: Electronic payments, such as prepaid cards, streamline multi-layered internal processes that often delay disbursements. For example, in cases of emergency situations, prepaid cards allow government agencies to quickly issue emergency allowances and distribute benefits on the spot, with funds being sent directly to cards for use immediately. Funds can be easily accessed by cardholders through POS, ATMs and online.
Everybody Saves Money With Prepaid
Prepaid cards are cheaper than traditional banking/cheque-cashing options, not only for the end user, but for the government and taxpayers as well. Printing and mailing paper cheques can be a costly business, and switching to prepaid solutions will drastically reduce taxpayer expenses and save time by streamlining payment administration.
Reduce Costs: Simply put, prepaid cards are less expensive than paper cheques. There are substantial cost savings in labour, print, and mailing of traditional paper cheques. According to the Canadian Prepaid Providers Organization (CPPO), government studies have shown that cheques cost approximately 0.82 cents to issue versus 0.13 cents for an electronic payment.
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