Los Angeles based El Rescate addresses immigrants’ financial needs with prepaid payroll cards
8/17/2007
Los Angeles based El Rescate addresses immigrants’ financial needs with prepaid payroll cards
While the 12-year long civil war in El Salvador may be far removed from the American consciousness, one agency in Los Angeles continues to provide valuable services to those who fled the war-torn country to seek asylum and legal residency in the United States. Those services have recently expanded to include prepaid payroll cards that can also be used to remit money to Central and South America.
The Visa® branded payroll cards are issued by Central National Bank (CNB,) based in Oklahoma, and processed by ITS (Interactive Transaction Services), a subsidiary of CNB. The Bank began its ITS prepaid card program seven years ago, keeping the immigrant in mind throughout the development process. That consciousness led to a line of products that is priced to the greatest benefit of the cardholder, said R.S. Baker, Jr., President and CEO of the Bank.
“We were determined to create something better than what was currently on the market,” he said. “Users of this payroll card program can be certain that they are being treated fairly and not being charged excessive fees.”
Additionally, the payroll card provides the unbanked a conduit to the American financial system. The payroll cards are fully functional financial instruments, that can be used to make purchases anywhere Visa Debit Cards are accepted, to withdraw cash at ATMs and to make long distance phone calls.
“That’s good for everyone,” Baker said. “And when you consider the remittance capability of the card, you also see the benefit to the cardholders, specifically because it allows them to stay connected to their families via money transfers, which account for a great percentage of GDP in many Latin American countries.”
For El Rescate and its constituents, money transfers can be sent from this card to banks in 13 countries, including El Salvador, Guatemala, Honduras, and Mexico. Some of those banks are Banco Argicolo; Banco Salvadoreño; Banco Uno El Salvador; Banco Desarrollo Rural in Guatemala; Banco Uno Guatemala; Banco Mercantil Honduras, Banco Ficohsa; Banco Uno Honduras; and Banco Credomatic Honduras.
The card also has pass-through FDIC Insurance and is predominantly loaded through standard payroll Direct Deposit or Green Dot, a prepaid debit card load network accessible in large participating retail store chains.
While CNB and ITS act as the bank issuer and processor, making the back end of the program function, Alianza International, a prepaid debit card and money transfer enabler, manages the marketing side of the program.
“We are proud to have been chosen by El Rescate, for marketing support services,” says Randy Gutierrez, President and CEO of Alianza International. “Our bi-lingual staff will work closely with El Rescate to educate the community on the benefits of the card and money transfer program with fees among the lowest in the industry.”
El Rescate, located in Pico Union in central Los Angeles, was the first agency in the U.S. to respond with free legal and social services to the mass influx of refugees fleeing the war in El Salvador in the 1980s and 1990s. Like so many immigrants in this country, many of the individuals seeking assistance from El Rescate, both then and now, are unbanked.
“The distribution of the payroll card allows El Rescate to enhance its financial services to better serve the immigrant community of Southern California,” stated Salvador Sanabria, Executive Director of El Rescate. “The card, with its money transfer features, will help immigrant families achieve many of their economic development goals in both the United States and their countries of origin.”
El Rescate began providing financial education workshops and small loans for micro-enterprise in the 1990s, with the hope of moving individuals into more traditional participants in the American financial system. The introduction of the payroll card, in September of 2007, provides a perfect vehicle for accomplishing just that. Individuals interested in obtaining the card can go to the El Rescate facility in Los Angeles.
“What makes this card different from all of the others on the market,” Gutierrez said, “is that our business model includes practices that other card providers are missing, and stresses social benefit and direct contact with the end consumer. We accomplish that by working in conjunction with community organizations such as El Rescate, which are trusted and well respected.”
Alianza’s September roll out is the first phase of a multi-phase program, which includes the establishment of less traditional money transfer channels using AlianzaNet, its global money transfer delivery platform. The platform supports money transfer origination and delivery through financial institutions, licensed money transfer sponsorships, micro finance institutions, and financial institutions in Latin America and other regions around the globe.”
About Alianza International
Alianza international is headquartered in the San Francisco bay area and is privately held. Alianza International provides international money transfer enabling and prepaid debit card enabling services to financial institutions, credit unions, nonprofit organizations, businesses and microfinance institutions globally through partnerships with banks and licensed money transmitters. For more information contact Blas Romero at blas.romero@alianzaintl.com or by phone at 310-270-5983.
About Central National Bank & ITS
Central National Bank & Trust Company (an FDIC insured financial institution) serving customers since 1913 is headquartered in Oklahoma, and is held by Central Services Corporation. There are seven locations throughout the state. The Bank reported assets of over $425 million in the second quarter of 2007. Since 2000, CNB has been issuing and processing prepaid cards with ITS, a subsidiary of CNB. They provide standard and custom card programs for employers, universities, financial institutions and other organizations. For more information about any of the Bank’s products, contact Tania Warnock at twarnock@cnb-enid.com or by phone at 580.213.1672. Or visit the ITS website at www.itsvcs.com .