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| Company type | Subsidiary |
|---|---|
| Industry | Inmate video visitation,financial services for theprison market |
| Founded | 2002 |
| Headquarters | Miramar, Florida |
Number of employees | 250 |
| Parent | Securus Technologies |
| Website | JPay.com |
JPay is a privately heldinformation technology andfinancial services provider focused on serving theUnited States prison system. With headquarters inMiramar, Florida, the company contracts with state, county, and federal prisons and jails to provide technologies and services includingmoney transfer,email,video visitation and parole and probation payments to approximately 1.5 million inmates throughout 35 states.[1]
JPay was started in 2002 by the company'sCEO and founder, Ryan Shapiro. In 2005, the company moved its headquarters fromNew York toMiami.
In 2009, JPay's services expanded to offer an inmateMP3 player, the JP3, and a library of music tracks for purchase.
In 2011, JPay moved its headquarters from Miami toMiramar, Florida, to accommodate a larger call center.[2]
In 2012, JPay launched atablet, the JP4, designed for theprison industry, which enables inmates to read and draft emails, play games, and listen to music.[3] It also allows inmates to view and attach photos and videograms.[4] The decision to permit use of the JP4, and the full extent of its functions, is made by the statecorrections departments.[5] JPay's tablet has been distributed in sevenDOC agencies, includingNorth Dakota,Georgia,Florida,Louisiana,Virginia,Michigan andWashington.[6][7]
In April 2015, JPay was acquired bySecurus Technologies though terms of the agreement were kept secret.[8]
An inmate's friend or family member can use JPay's money transfer service to deposit money to the inmate's commissary or trust account. JPay offerselectronic payment and deposit options which include credit and debit card payments via online, phone, andmobile app channels. The company has a relationship withMoneyGram to accept cash at MoneyGram's U.S. agent locations, likeWalmart andCVS/pharmacy.[9][10] Additionally, the company processesmoney orders on behalf of its contracted agencies.
JPay provides services that an inmate and an inmate's family and friends can use to communicate, such as video visitation,email, videogram,[4]instant messaging,[4] and atablet computer ("J8P5").[11]
JPay providespayment services for offenders to make community corrections andcourt-ordered payments.[12][13] As part of itsparole andprobationary services, JPay also offers a release card[13] (JPay Progress Card), which is a prepaid, reloadableMasterCard.[14] While all agencies contract to use JPay for money transfer services, they do not all utilize JPay's full ranges of services.[11]
JPay has been one of the corporate supporters of the Creative Corrections Education Foundation, a nonprofit founded by a former Texas warden, which collects contributions from prison inmates and from corporate sponsors to fund scholarships for children of prison inmates. In 2014, the charity reported having provided $63,000 in scholarships over the previous two years.[15]
In 2012, thePennsylvania Department of Banking fined JPay $80,000 for violating the state'sMoney Transmitter Act by failing to have the necessary state license since it began operating in the state in 2004.[16] As of 2014, JPay had been fined a total of $408,500 across seven states for operating unlicensed businesses.[17]
In February 2015, Valerie Buford sued theIndiana Department of Corrections after she learned that her brother, Leon Benson, had been placed insolitary confinement, hadgood conduct time deducted, and had JPay access revoked after she had reposted a videogram sent via JPay on a Facebook page campaigning for his release.[18] Although access was later restored, Buford continued to argue that the actions had a chilling effect on her ability to communicate with Benson. Officials of the prison claimed the actions were to "protect" JPay'sintellectual property; at the time, itsterms of use stated that JPay held thecopyright to any content that was sent through its systems, regardless of its original author. Following a May 2015 posting by theElectronic Frontier Foundation that criticized the company for attempting to abuse copyright law, JPay amended its terms of use to no longer contain this clause.[18][19][20]
SenatorCory Booker vowed to ask theConsumer Financial Protection Bureau to intercede on behalf of inmates against JPay's allegedly predatory practices with its prepaid debit release cards which are often the only form in which released prisoners are permitted to collect their prison earnings and remaining commissary balances. Allegedly, the company deducts non-optional fees which can exceed 40% of the funds owed to released inmates.[21]
In approximately half of the states it operates in,[11] contracts between the various state prison systems or individual prisons and JPay include an agreement to apportion part of the fees, collected from those sending money to the prisoners, back to the prison operators in exchange for giving JPay a monopoly over financial transfers to inmates. According to state mandated disclosures in Illinois, correctional institution operators there received approximately $48,000 for 2013 in what company founder Shapiro prefers to call "commissions".[17] One prisoner, released in 2010 following a 28-year incarceration for murder, identified the potential hardship on the poorest families, leaving a mother of three with a husband in jail to decide: "Do I send money to him so he can afford to stay in touch with the kids, or do I feed the kids?"[17] Meanwhile, JPay funds lavish parties for corrections institute bureaucrats during the American Correctional Association's annual convention, providing "tequila, hand-rolled cigars" and "live mariachi band" as well as sponsoring an award, including a trip, presented by the Association of State Correctional Administrators to former state corrections directors.[17][22]
At the political level, despite many of JPay's contracts explicitly banning lobbying,[23] Shapiro says the company's lawyers approved JPay's hiring registered state lobbyists[24] and spending $20,000 lobbying Washington in attempts to take the federal prisons' financial transactions contract fromBank of America.[17] AMaster Contract between JPay and the National Association of State Procurement Officials and the Multi-State Corrections Procurement Alliance, valid until July 2015, set out kickback rates, to any state signing on, of 50¢ per inbound money transfer to prisoners, 5¢ per outbound email, $5 perMP3 device, $10 per JP5 Tablet device, and 5% of JPay's music download fees (which are 30% – 50% higher thaniTunes).[25]
