Are paper checks obsolete as a form of making benefits payments? There is definitely a trend in that direction. One big reason is that paper checks are expensive to produce and process, while prepaid cards help insurers save time and money. Benefits recipients also win with prepaid cards, as they receive faster, safer, more cost-efficient access to their payments. To learn more, read this informative article from FSV.
A Superior Way To Deliver Claims Payments
Insurers and claimants both benefit from this more cost-effective and efficient way to disburse funds. In an ideal world, insurers would pay all their claims electronically, rather than enduring the administrative burden, fraud risk and expense of paper checks. Unfortunately, when insurers try shifting payments to direct deposit, they run into a major roadblock: not everyone has a bank account, so a significant number of claimants lack the ability to accept direct deposit payments.
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