The National Prepaid Cards Steering Group Colin Whitehouse Independent Govt. Advisor Chair – National Prepaid Cards Steering Group

National Prepaid Cards Steering Group Created in April 2011 Independent group, supported by MasterCard Over 40 Local Authorities, 4 Programme Managers & MasterCard Assess sector requirements and capture best practice Share best practice, issues and problems for mutual benefit Allows programme Managers to better shape their products to market needs

Prepaid Cards - guidance resource Specification based on what Councils said they need, or would have liked to have known before they started Content based entirely on the experiences of Councils who have implemented schemes or are doing so Programme Managers contributed their experiences of implementation and practical issues Advanced Payment Solutions (APS), Allpay, Corporate Pay, Prepaid Financial Services (PFS) Steering Group members provided documentation to create a supporting online resource

What are Prepaid Cards and how do they work? Funds are uploaded onto card by Council and/or service user Cards can be then used in a similar way to credit/debit card, but: ATM/cash back use is usually blocked Spend can be restricted by merchant or by category Balance cannot fall below zero (not true of all providers) Can simulate Direct Debits and Standing Orders Service Users can monitor transactions and balances online Telephone support can be provided Councils have access to transaction level details

Main business benefits Low cost of operation, high return on investment Replaces cash handling - safer and more secure Good management information (the no.1 major benefit) Makes more effective use of staff time Supports personalisation and commissioning agendas Monitored spend leads to better outcomes Easy to track client contributions Possible income generation opportunities No major IT investment required

Main client benefits Prepaid cards are generally available to all, regardless of financial circumstance No need to carry and manage cash Promotion of life skills / social inclusion Access to better services and lower online prices Quicker access to funds Easy monitoring and management of balances Funds cannot be ‘lost’ by disappearing into an overdraft

Typical categories of use Direct payments Disability allowances, young people leaving care, social care Budget management and monitoring Petty cash replacement, travel expenses, vouchers Instant issue Cards can be loaded instantly 24/7 Children’s services, asylum seekers, staff payments Councils can carry a stock of cards for emergency use

Typical business uses Solving service user based problems Unbanked service users - replaces cash And unbanked users can pay 8% to cash cheques Monitoring appropriate spend of funds Easy reporting of transactional use, automatic triggering of reports Replaces the chasing and processing of paper bank statements Taking back funds when necessary Funds remain property of the issuing Council Better information allows effective service/demand planning As an employer Payments to temporary or agency staff, assistance/relocation payments Travel and other expenses, Elected Member expenses become instantly transparent Replacing petty cash in catering, housing repair etc.

Contents of the guidance document What are Prepaid cards and how do they work? What typical business benefits can they deliver? How would our clients benefit? How much do they cost to operate? Where might they be used? Case Studies In which other service could they be used? How do I create the outline business case? How do I arrive at my current costs? FAQs

A few examples from the online resource Guide to the use of Prepaid cards for service users Cardholder agreements Council / Direct Payments agreement Prepaid cards business case Options appraisal report Project Initiation Document Tender specification Marketing brochures Sample Invitation to Tender Sample Pre Qualification Questions …………. and more

New videos Josie Wessells from LB Brent talks about their innovative use of direct payments management information LB Camden’s use of COO.L prepaid cards to support young people leaving care