BancorpSouth will begin issuing payroll cards, an increasingly popular replacement for checks for both card issuers and consumers.
The $13.4 billion-asset Tupelo, Miss., bank will issue MasterCard-branded payroll cards for regular debit-card purchases. Users can also track the spending and track budgets online. Payroll funds will be immediately available on payday, and can the account be reloaded at any BancorpSouth location, via online transfer, ACH and through MasterCard repower locations. Text and email alerts are also available.
“For businesses, the payroll card streamlines the payroll process while reducing processing and check fees. For employees, the payroll card enables them to have immediate access to their finds without waiting in lines or paying check cashing fees,” said Michael Lindsey, senior vice president of retail banking for Bancorp South, in a press release.
The bank’s move comes as the use of prepaid cards expands quickly. Aite Group predicts the number of prepaid cards in the U.S. will increase to nearly 30 million by 2016, up from about 10 million in 2010.
BancorpSouth did not return calls on Wednesday morning regarding fee structure for prepaid debit transactions. Fees have been the subject of frequent scrutiny in the prepaid industry.