Direct Deposit Experience with an Outside Vendor

Where we were… Issued over 3,700 checks to students per term totaling $6.2 million Tied up 7 employees for 3-4 days to get overage checks in the mail Dozens of checks returned because of incorrect addresses Students paid substantial fees to cash checks at locations such as the “UNBANK” Check Fraud—1 to 2 checks per term stolen and cashed by someone other than the student Payroll Checks picked up by students at the Accounting & Fees Office “It’s a good idea, very helpful.”… NHCC Student

What we wanted to accomplish… Deliver funds to our students faster Reduce costs to both the college and the students Offer direct deposit to students without adding another process Make sure the college is compliant with regulations Reduce the college and students exposure to fraud “Good idea, don’t like the service charges I was paying”… NHCC Student

The Journey… “I like not waiting in line to pick up my paycheck ”… NHCC Student Implementation and marketing materials provided by vendor Twelve weeks from start to full implementation Electronic file sent daily for all new, registered students. Tech ID, name, address, and either last 4 digits of SSN or birth date All registered students receive a card—the card is the key to making their on-line preference selection Vendor provides support to staff and students

Where we are now… “I love my card!”… NHCC Student 100% of students are now paid through a 3 rd party vendor using MnSCU’s Direct Deposit module—no checks are generated at the college Students’ choice on how the vendor delivers their funds ACH Transfer to Existing Account Paper Check Vendor Checking Account MasterCard/Debit Card Cost Savings—Vendor charge to deliver funds to student is less than the cost of a postage stamp

Time savings for Accounting & Fees Dept Process to finalize delivery of funds to vendor takes one and one-half staff people three hours. Would take no more than one hour if check advices did not print. Vendor or text message notifies student that a refund is coming and the dollar amount. Vendor or text message confirming funds were deposited or check was mailed. Vendor and student manage student banking information. Vendor collects required forms. “Please continue this program!”… NHCC Student

“Easy to Use!”… NHCC Student Better Customer Service for our Students Students get their Financial Aid funds two weeks earlier. Students with cards have access to cash within an hour. Free ATM on campus. ACH—Available in 1 business day. Paper Checks—Available in 3-5 business days. 24/7 Internet access allows students to see amounts disbursed and manage refund preferences. Students avoid lines for payroll checks and disbursement Information.

“Keep up the good work!”… NHCC Student Regulatory Compliance is managed by the Vendor Dept of Education Cash Management/Electronic disbursements Regulations Red Flag Rules PCI-DSS Compliant

Side Benefits Accurate student addresses MasterCard/Debit Card with NHCC logo is free advertising Vendor assumes fraud Liability (in most instances) Fewer checks written—easier bank reconciliation “I like that I can deposit to separate accounts for Financial Aid and Student Payroll” … NHCC Student