Tuesday, February 23, 2010

Market Focus Session - Implementing Prepaid Payroll in the Transportation Industry: Yellow Cab Co-Op

McCormack, Vice President, First National Merchant Solutions
Nathan Dwiri, President, Yellow Cab Cooperative

Scott started by highlighting how regulations within the taxi cab industry differs from state by state and so that might affect payroll processes. For example, taxi cabs in Vegas are independent contractors and so companies might be able to get away with more than other states might allow.

First National Merchant Solutions noticed a huge problem with the taxi cab payroll processing. They saw a huge line of about 150 people waiting for checks to be disbursed to them. Many cab drivers were leaving their shifts about 45 minutes beforehand in case they had something to do after collecting their paychecks. After this case study it was obvious that payroll had to be pushed to a prepaid card to ease things. First National focused on streamlining this process for Yellow Cab.

First National was able to eliminate roughly 90% of the cash that they had on hand at the offices to pay cab drivers. Cab drivers also had peace of mind with security offered through prepaid cards instead of having cash on hand. Education should be trickled down to cab drivers as well since they are being transitioned from cash to prepaid cards, and this might be a new alternative for them. They are in the process of implementing similar programs across different states.

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