Under this new service, 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 millions of people with limited or no banking access, the company said.
Millions of 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 company noted. A debit card solution offers a portable and more secure way for these consumers to make every-day transactions.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 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.