There is a large segment of the population that does not use traditional bank accounts. Therefore, when they are issued paychecks, they must go to the bank that issued the paycheck in order to receive the entire amount of the check in cash. Alternatively, checks can be cashed for a significant fee at various third-party outlets. As a result, there is a disadvantage to these un-banked individuals in that they must travel to banks where they do not hold an account. Or, they have to pay a significant fee if a third-party outlet is used to cash a check. Also, they receive the entire amount of the check and must carry it on their person rather than being able to keep it safe in an account.
As is readily apparent, those without a bank account are severely disadvantaged in that they do not have a convenient mechanism for accessing a portion of their payroll funds between pay cycles. Rather, they must retrieve all their cash and store it in their homes or on their person. This poses a risk in that the money could be lost or stolen. Furthermore, the ready access to a large amount of cash does not encourage saving.
This segment of society that does not have bank accounts is further disadvantaged in receiving alimony or child custody finds. In some circumstances, wages are garnished from a noncustodial parent's paycheck and transferred to a custodial parent. This can easily be accomplished when the custodial parent has a bank account. However, if the custodial parent does not have a bank account, then the transfer of finds to the custodial parent can be difficult.
Thus, this segment of society would benefit from a system that permits it to easily receive payments that would traditionally be deposited in a bank account. Furthermore, as this segment of society is often limited in their ability to travel to a check-cashing bank, they would benefit from a system that would make funds available at a wide variety of locations.
USPTO Backgrounds
USPTO Backgrounds