Cashing in on the convenience of a payroll card is beneficial to both employers and staff members alike. These payroll cards are an alternative payroll processing option, where instead of issuing a paper check or directly depositing money into a worker’s account on a regular basis; funds are electronically issued to a specific debit card in the person’s name. These cards function much the same way as a conventional debit account, but they do come with added perks for companies and consumers that use them.
Understanding the Benefits
For workers, there may be some initial friction when proposing the adoption of payroll cards. There are associated fees for withdrawals from these monetary devices, and sometimes just maintaining the card from month to month comes with a surcharge. However, for those without bank accounts, check cashing fees will completely disappear, representing huge savings for employees. What’s more, these tools provide an instant means of money management, and they are more secure and easily tracked than carrying cash or writing checks.
Internally, payroll personnel will appreciate the streamlined process that comes with instituting cards instead of a myriad other financial options. Many employers may offer checks and direct deposit, as well as additional paper statements for those that have already chosen electronic payment. Removing all of this physical documentation from the equation is easier with the convenience of a payroll card option.
What’s more, bringing this into a business structure as a primary means of payment can save banking fees for both parties. Individuals get the benefit of not having to pay for check cashing anymore, while employers don’t have to worry about service fees from direct deposits or other similar expenses. Eliminating physical checks cuts down on the likelihood of fraud and other kinds of theft that regularly affect these forms of currency as well.
Putting it to Work
Companies are already cashing in on the benefits of this system, which offers a big improvement over outdated paper checks without creating a more cumbersome solution for payroll. Some of the largest payroll providers, boasting thousands of regular staff, have seen how financially sound the convenience of a payroll card really is to business revenue, and they are pushing more employees to take up this tool that helps both the company and its staff as well.
Wal-Mart has made the transition for all its employees, partnering with American Express to offer safe and secure payroll cards. As the largest private employer in the world, the company stands to save a substantial amount of time and money through this crucial human resources substitution. What’s more, the business is offering these cards to consumers as well for use at their own jobs.
Have you considered offering your employees access to a payroll card? You can learn more by registering for our weekly live webcast, Paperless Payroll with the Sage Payroll Paycard.