It seems we are coming full circle. Fifteen years ago the move was to use salary packaging cards to manage the CAP for hospitals, charities and PBI’s and fifteen years ago it made perfect sense, because of the number of mail in claims that were lost.

Nowadays, it seems to be almost a hassle to use the cards;

• Employees need to identify themselves with a bank to access the cards;
• Cards are mailed out and have a separate pin number;
• You need to login into another APP to check you balance;
• If you do not spend all the allowance in the year, your next years allowance is reduced or surplus funds are sent back to payroll to process;
• If you change providers, you need to go through the Know Your Customer process again;
• For the pleasure of all that, you are charged between $30 and $60 per card per year, in addition to your salary packaging fees.

Seems to be in the too hard basket…..

Historically, salary packaging companies used cards to reduce the compliance work they had to do and effectively farmed it out to the card companies. Greta outcome for salary packaging providers.

In reality, technology has moved so fast, that managing compliance has been made easier. You can pay your CAP benefits into your own;

1. Credit Card;
2. Mortgage;
3. Rental;
4. Loan.

If you consider that you don’t need to use a third party card to access you CAP, the entire equation becomes so much simpler. By making your packaging company manage the compliance again, you cut out the need for a third party.

1. No more additional APPS to manage;
2. No more Know Your Customer requirement to identify yourself; and
3. You reduce your fees.

At Pay@bility we have engineered our systems to manage the CAP without the use of cards and use the facilities you already use, making it easier to manage your tax free concessions.