Payroll cards are found to be just as effective as direct deposit when trying to improve employee morale and lower payroll costs. These days, small businesses are constantly on the hunt for methods to reduce expenses and to make operations more streamline. One aspect which is often overlooked is the function of payroll, this can possibly be a hindrance on company operations and could be the cause of perpetually costing more than it needs to be, especially with all of the advancements in payroll methods and technologies.
For many establishments, direct deposit solves a cost-saving riddle by granting benefits both to the employees and the business as a whole; but for the industries where underbanked or unbanked employees are employed, direct deposit doesn’t work. For this reason, an increasing number of organizations are seeking payroll cards as a win-win, thus saving both the employees and employers money and time.
Why Payroll Cards?
With the fees associated with administering payroll on the rise, companies have been actively seeking other options that not only decrease costs, but also grant employees an improved method of accessing and receiving their salary. Traditionally, organizations have elected to implement direct deposit systems which were able to solve old process hiccups like check printing, envelope stuffing and the hassle required to deliver them. However, this does not help businesses which employ any number of employees who may not use traditional banking systems. Other alternatives must be considered to address those individuals.
Today, there still exists a significant amount of people who don’t take advantage of the banking system. The reasons that they don’t choose to participate vary. Some people have decided not to buy in due to their concerns over the cost of banking. Others choose not to use a bank because they don’t have access from prior credit issues or had bad previous experiences with banking. When a paycheck is issued to them, they are must locate a check-cashing service which can be time-consuming and expensive. It doesn’t provide them an effective or efficient way to manage their cash.
With a payroll card, where the same functions exist as with traditional debit and credit cards, but enables employers the ability to pay their staffs safely and quickly like a direct deposit method would; employees have immediate access to their wages. The card can be used at all locations that accept traditional debit and credit cards.
How Does Payroll Card Work?
With selecting this process, the employer would directly deposit funds to a Visa prepaid card instead of depositing employees’ wages to a bank account. The employees are able to use these prepaid payroll cards at any point-of-sale purchase (instore or online), transfer funds, complete bill payments or withdraw their money at ATM machines around the world.
Visa T24 cards come protected with PIN and chip security systems; thus safety should not be a point of concern. And, because prepaid cards are ever linked to a credit line, in the event a card is stolen or lost, potential financial harm is restricted. In such situations, the owner of card just needs to contact the prepaid card provider to notify them of the occurrence and the card will be rendered unusable immediately. The provider of the prepaid card is able then to arrange for a new card to be delivered to them.
Key Advantages for Employers
- Minimal start-up costs
- Accessible to corporations of any size
- Removes the liability related with paper checks
- Decreases the exposure to fraud
- Environmentally friendly
- Improves employee morale
Key Advantages for Employees
- Wages are instantly accessible
- Abolishes the cost and wait to cash their check
- Stress-free access to their money at any time
- Freedom from having to carry around a check that can get destroyed or lost
- Ability to make direct purchases
- More effective way to oversee their funds
Taking all of these benefits into account, it can be concluded that payroll cards are truly an ideal payroll solution for employees and for their employers to streamline the payroll process.