A card-based system for a non-bank entity to indirectly provide direct
deposit capabilities for funds representing pre-payments for negotiable
instruments. When a direct deposit of funds into a first account
associated with the individual and maintained by a first entity is
detected, the total amount of the funds is transferred into a second
account associated with the individual and maintained by a second entity.
The first entity is a bank or other financial institution subject to
federal banking regulations, while the second entity is not subject to
federal banking regulations. The individual may withdraw the funds from
the second account by using a card at an ATM or POS terminal requesting
the issuance of negotiable instruments. Negotiable instruments may be
issued in any dollar amount not exceeding the balance of the second
account. A properly enrolled customer may make subsequent deposits into
the second account. Security is provided by requiring the presentation of
identify verification when the negotiable instruments are endorsed and
cashed.