Ethos Visa Debit Card Account Spells Doom for Fat Wallets

Business Wire, Nov 29, 2005

VANCOUVER, Wash. -- Ethos:

--The First and Only Card of Its Kind for the Financially Underserved; With Consumer-Activated Fraud Prevention Security and Mobile Banking Features; Reduces Payroll Costs by Replacing Paychecks with Plastic and Helps People Develop Smart Saving and Spending Habits

Cash is no longer king.

Employees will be delighted the next time they receive their paycheck -- directly deposited onto a plastic card -- making their funds immediately available through a debit card account. Workers can now enjoy consumer-activated fraud prevention features and the convenience of mobile banking with immediate access to their money using the new ethos(TM) Visa(R) Debit Card Account from Affinity Card Systems, Inc. (ACS). Ethos offers convenience -- it is accepted at more than 32 million locations worldwide -- and security -- each account is individually insured by the FDIC and is issued by West Coast Bank (Nasdaq:WCBO).

"ACS intends to provide an ethos branded Visa Debit Card Account to a financially underserved customer base," said Terry Lock, chief executive officer of ACS, "by offering branded cards through employers, staffing agencies, unions and government agencies that disburse funds. This revolutionary new tool can help provide the underserved with financial independence through low cost access to funds." Recent industry statistics highlight the growing use of these types of debit card accounts, increasingly to the exclusion of credit cards.

Employers favor debit card accounts because they eliminate the time and expense of cutting payroll checks. With the electronic transfers of funds, the money is available immediately on payday -- which makes the employee happy.

For the nation's estimated 22 million unbanked (people with no bank account) households, it is a means of managing money more effectively and securely. It is also a cost effective alternative to checking accounts since the monthly fee is about half of the monthly cost of a standard non-interest bearing checking account. Numerous studies show that the average checking account is overdrawn as much as nine times a year, at a cost of almost $22 per occurrence. Ethos virtually eliminates these charges as the account holder is only able to spend the funds available on the card.

Ethos eliminates the hassle of visiting a bank since the debit-account information is available 24/7 through a toll-free, automated telephone system or online. Accountholders also enjoy fraud prevention tools including the ability to turn the card on and off from a touch-tone phone and to receive text messaging alerts for deposits, withdrawals and purchases. With these features and single purchase transaction enablement, they can now protect themselves from fraud better than any bank or credit card company ever could. These features provide appeal for all employees, whether previously unbanked or not.

Debit card accounts are particularly well suited for payroll deposits across a variety of different industries. This includes the staffing industry and government/insurance providers, who can use the card account for structured settlements and disbursements.

According to the Boston-based research firm Celent Communications, payroll cards will be used for 3.8 million workers by 2006 and more than half of these will be issued to the nation's unbanked.

This revolutionary technology has other benefits, too. It's a secure, more cost effective method of managing money for employers since it eliminates the average payroll processing cost of $2-4 dollars per check and puts an end to stolen checks and stop payment fees. The card also helps employees save money by doing away with check cashing fees. According to the Office of the Comptroller of the Currency, part of the U.S. Treasury Department, a typical unbanked consumer making basic transactions pays $270 a year at a check cashing service to cash two $400 paychecks a month and to pay five monthly bills using money orders.

Ethos includes the following features:

--Consumer-activated fraud prevention features, including the ability to turn the account on and off; text messages for purchases, deposits and withdrawals

--Free 24/7 access to account information online or a toll-free automated telephone system

--Free point of sale purchases

--Free direct deposit of payroll

--Cash back at the point of sale at no additional charge

--Individually FDIC-insured account

--Safe access to cash at over 32 million locations that accept Visa debit and nearly one million ATM locations worldwide

--Instant account-to-account transfer capabilities

--One of the lowest enrollment fees of $6.95 and a monthly fee of only $3.95

--Protected by Visa Zero Liability Policy. If the card is lost or stolen, Visa protects the cardholder against unauthorized charges if the loss is reported immediately.

--Automatic enrollment in a non-insurance pharmacy discount program (prescription drug savings of 10-60 percent)

--Electronic deposit of funds through MoneyGram International

About ethos

The ethos Visa Debit Card Account from Affinity Card Systems, Inc. empowers people to safely and securely manage their own money. Ethos meets the needs of the staffing industry, labor unions, students and government/insurance providers and people with no banking relationship. Ethos is individually FDIC-insured, gives accountholders convenient 24-hour a day access to money using ATM networks and over 32 million retail locations that accept Visa worldwide. For employers, it reduces payroll processing costs and paycheck fraud and it increases employee retention. For more information, visit www.my-ethos.com or call 1-888-my-ethos (888-693-8467).