Department of Labor’s costs slashed by replacement of paper checks

New solution delivers cost efficiencies and greater control and transparency, while improving recipients’ experience

The challenge

With Kansas experiencing its highest unemployment rate in over 50 years and state expenditures under increasing pressure, the Kansas Department of Labor (KDOL) sought to replace its current check-based method of paying unemployment insurance with a new, streamlined system.

Any new solution needed to deliver substantial cost efficiencies as well as greater control and transparency, while also improving the experience for recipients.

The solution

Within 90 days, Citi Prepaid Services had delivered a solution that affects payments quickly and accurately and at a much reduced cost to the taxpayer.

By replacing paper checks with debit cards, benefit payments can now be delivered faster and in a convenient, secure and economical way.

The solution offers several other advantages to payees including online account management, enhanced fraud protection and a responsive customer service function.

The result

Once implemented, Citi's solution has a clear, positive impact, eliminating the need for KDOL's paper unemployment checks and this resulted in major cost savings.

KDOL's decision to work with Citi Prepaid Services has also significantly reduced paper processing, and therefore the State's environmental initiatives.