Why insurance companies are replacing checks with prepaid cards? Paper checks are expensive to produce and process, so every check that's replaced by an electronic payment saves processing time and money. Many of the costs and risks associated with check disbursement are hidden throughout the process, including:  

• Operational costs of printing, storage and security.
• Fulfillment and postage.
• Replacement of lost and stolen checks.
• Management of claimant inquiries.
• Compliance with state escheatment laws.
• Fraud and theft losses.

There is another benefit beyond the significant cost savings gained from eliminating checks. By shifting some of the responsibility for the payment process to a prepaid card provider, insurers and claims processors are able to focus on their core competencies with fewer distractions. For example, when FSV's customer service centers start fielding the ever-popular "Where's my check?" calls, insurance associates can focus on processing claims.

Use of Prepaid Cards Is Trending Up

Prepaid cards are aptly named. Funds must be loaded electronically onto the cards before they can be used. Cardholders access their available funds, so the prepaid card functions much like a debit card that's associated with a traditional bank account. However, because no bank account is required to enroll, prepaid cards are accessible to a broad audience. In addition, prepaid cards allow payers to distribute funds to cardholders regardless of mailing address or location. These advantages over paper check disbursements are driving increased usage of prepaid cards in a wide variety of applications, including wage payment, reimbursement of travel and business expenses, rewards and recognition payments, government benefits and more.

In fact, many state governments have virtually eliminated paper check payments and are issuing prepaid debit cards to deliver funds for unemployment benefits and other payments. And the U.S. Treasury has announced that by March 2013, it will disburse all federal benefits payments electronically. Benefit recipients who don't set up direct deposit to a bank account will be issued prepaid cards instead.

Better Value, Service To Claimants

The FSV Select Amenity MasterCard Prepaid Card offers claimants a number of advantages over paper checks. Funds are loaded quickly and safely onto the card. Cardholders enjoy the added purchase power, security, convenience and prestige of carrying a MasterCard, and they can immediately access their funds to shop and pay bills online, in person or by phone.

Adopters of prepaid cards often get faster access to their payments. Rather than waiting for their checks in the mail, they can set up text and/or email alerts to get real-time notification when their funds hit their account. Even if claimants travel, are evacuated during a disaster or move without providing an updated mailing address, they will continue to receive their payments on time, as expected.

Cardholders enjoy numerous free options for accessing their funds. They don't have to go to a bank or check-cashing store and carry around a large sum of cash and possibly pay check-cashing fees. Plus, they can make purchases wherever MasterCard debit cards are accepted and withdraw cash from an in-network ATM or over the counter at a bank teller without paying a fee.

With a Select Amenity card, cardholders can also monitor their spending via email or text alerts, and manage their money using online account access and multi-lingual customer service that's provided for free all day, every day.

How you can offer the FSV Select Amenity MasterCard Prepaid Card to disburse payments more efficiently

FSV makes it easy to reduce the number of payments you make by paper check by introducing the Select Amenity MasterCard as your preferred method for distributing benefits to claimants without bank accounts. Implementation is easy because FSV provides a full suite of educational and marketing materials, including training videos and supporting collateral, for insurance associates, as well as claimants. These materials help adjusters and claims processors understand the value proposition for prepaid cards and how they can make a compliant offer to potential cardholders. Claimants learn how to use and get the most value from their cards.

If you are ready to eliminate costly, wasteful and time-consuming paper checks and streamline your payments process, then call FSV. We'll provide you with an attractive electronic option that adds value at every stage of the claims payment process. With FSV as a partner, you can offer relevant products and custom solutions to your customers, as well as reduce waste and enhance cost-saving internal processes without disrupting critical claims operations.

Visit www.fsvps.com to learn about all the advantages of FSV's insurance benefits prepaid program.