Using prepaid cards in

Local Government

Savings from Corporate

Transactions
 Using prepaid cards in
Local Government
1 ments, telephone payments and point of sale
What are prepaid cards?
A prepaid card is a bank card that is charged
with funds for use by the holder, but can never
go overdrawn. Prepaid cards have no credit
line and are not linked to a bank account.
Prepaid cards can be used at all card enabled
suppliers and, if desired, at cash machines.
Funds can be transferred onto the card at any
time.
Just like corporate purchase cards, prepaid
cards can be restricted according to the type
of outlet being used. Cards can also be can-
celled, just like any other payment card.
Some uses for prepaid
There are a wide number of uses for prepaid
cards in Local Government, including:
• Housing benefits
• Individual budgets
• Leaving care payments
• No recourse / asylum seeker payments
• Grants to third parties
• Travel and expenses
• Non-employee expenses
• Petty cash and imprest accounts
• Youth activity projects
• School meals and uniforms.
How can prepaid benefit
local people?
Council residents issued with prepaid cards
are likely to experience a range of benefits
depending on their circumstances.
Personal safety – cards eliminate the need to
carry cash. Lost or stolen cards can be can-
celled without losing funds.
Choice – Cardholders can make on-line pay-
payments as well as being used at ATMs.
Financial awareness – Cardholders gain a
better understanding of how to manage their
money.
Social inclusion – Residents who are ineligible
for bank accounts can still use prepaid cards,
making them part of the electronic economy.
Easier, quicker disbursement – Cardholders
can receive funds without being present or hav-
ing to queue.
No need to travel – Residents or their carers
who receive payments in cash or cheque don’t
have to travel to collect funds.
How can prepaid benefit
Local Councils?
Efficiency – prepaid cards can be 70%
cheaper to administer than cash and 50%
cheaper than running a bank account (e.g. for
Direct Payments or corporate expenses).
Reduction in Risk – Councils will need to store
and move less cash. Council staff are less likely
to be exposed to the threat of robbery or violent
crime.
Simplicity – The card setup and re-load proc-
ess, means that prepaid card accounts are a
simpler alternative for over the counter cash
disbursements.
Better cash management – Unspent funds
can be recouped automatically or manually.
Better information – Depending on the type of
scheme, information on the activities of card-
holders can be made available for analysis.
Meet Government targets – Prepaid can be
used by Councils to help them meet the re-
quirements of Government targets (see
‘Prepaid and LAA targets’ overleaf).
 Using prepaid cards in
Local Government
2
Prepaid and LAA targets
Used in the right way prepaid cards can be
used by councils to help them deliver on their
Local Area Agreement (LAA) targets. Targets
such as NI14 (avoidable contact) can be sig-
nificantly affected through the use of prepaid.
Any projects that require disbursements to be
made to citizens can benefit from prepaid. The
following LAA targets could be affected by
prepaid:
• NI 045: Young offenders' engagement in
suitable education, training and employment
• NI 110: Young people's participation in
positive activities
• NI 148: Care leavers in education, employ-
ment or training
• NI 125: Achieving independence for older
people through rehabilitation / intermediate
care
• NI 130: Social Care clients receiving Self
Directed Support per 100,000 population
• NI 136: People supported to live independ-
ently through social services (all adults)
• NI 141: Percentage of vulnerable people
achieving independent living.
Buying prepaid
Prepaid programmes are priced on a variety of
factors, including the number of cards, the
amount of funds passing through the cards
and whether the cards are used at ATMs.
There are only a small number of UK banks
that can issue prepaid cards in the UK.
The best approach to buying a prepaid pro-
gramme is to establish a clear picture of how
you envisage the prepaid cards being used in
your authority, and to use this as your specifi-
cation criteria when working with the banks.
Ticon can help you to draft your specification
criteria and can work with you to identify the
appropriate prepaid product for your needs.
Implementing prepaid
Setting up a prepaid programme requires the
authority to establish a new set of procedures
for issuing, loading and stopping cards, as well
as monitoring the card programme. Card recipi-
ents will need to be educated on how to use the
cards, and council staff will need to understand
the limits of the cards and how to use them.
Card issuing processes will need to ensure that
council funds are protected from potential fraud
and steps must also be taken to ensure that
there is an appropriate separation of duties
when distributing funds to cards.
Implementation of a card programme can be a
demanding project and the implementation will
require resourcing from the Council, as well as
a clear understanding of what the prepaid pro-
gramme can achieve.
Ticon can assist councils to design and deliver
their prepaid card implementations, ensuring
that the implementation of a card programme
will meet the needs of the Council’s clients and
save money for the Council.
About Ticon
Ticon are experts in Local Government transac-
tions and efficiency. We offer a range of ser-
vices that can help Councils to improve the effi-
ciency of their day to day transactions. From
purchasing efficiency to process efficiency in
planning and waste management.
Ticon are experts in using bank card products,
including prepaid and can help Councils to se-
lect and implement the right prepaid product in
the right manner.
If you would like to learn more about how Ticon
can help you, please contact:
Paul Mander
t: 0207 836 1999
e: paul.mander@ticon.uk.com
w: ticon.uk.com