Prepaid Payroll Cards – Paying employees with paper paychecks is becoming an archaic method for administering payroll these days. Since most consumers don’t pay for their purchases by paper check, it only makes sense for company payroll to catch up. Many businesses are now paying employees with prepaid payroll cards, which are reloadable and allow employers to deposit wages directly to a card as a low-cost and more efficient check alternative.
Employers realize immediate savings when they make the transition to cards. By reducing HR costs to printing expenses to overnight delivery charges, payroll cards provide employers with numerous savings and benefits. Making the switch to this payroll alternative saves on unnecessary costs for employees as well.
How Prepaid Payroll Cards Work
Cards are issued by all major credit card networks such as Visa and MasterCard, and are accepted anywhere their logos are posted. Employers start by registering with a prepaid payroll provider. Upon enrollment they receive payroll cards for each employee that is registere. During the pay period the employer deposits funds onto the employees’ cards. From there employees can use their card like any prepaid debit card. They can remove cash from an ATM, pay for purchases right at the POS, and buy items online.
Who Benefits From Prepaid Payroll Cards?
Payroll cards are perfect for any type of employee-salaried or hourly-that typically receives a paper paycheck. Employees without bank accounts can especially benefit from payroll cards as well as part-time employees or temporary workers. Employees who don’t want to provide their account information for direct deposit can use cards as a payroll alternative.
- Benefits of prepaid payroll cards for employers include:
Simplifying every aspect of the payroll process
- Reducing the cost of payroll-including time, resources, and supplies-in comparison to paper-based payroll systems
- Decreasing the costs of special payroll disbursements, such as severance checks
- Giving employees immediate access to their paychecks-whether they have a bank account or not
- Enjoying the security associated with all major credit card network logos and brands
- Reducing bank service fees associated with reconciliation, stop payment, or lost/stolen paychecks
- Improving on the advantages of direct deposit compared to traditional payroll methods
Benefits for employees include:
- Using their prepaid payroll cards worldwide-anywhere debit cards are accepted
- Being able to take advantage of an optional bill pay method to avoid third-party services
- Increasing security measures provided by all major credit card networks
- Saving on check cashing fees
- Reducing the amount of cash they otherwise have on hand after cashing paychecks
- Being able to replace cards even if they’re lost or stolen
- Spending less time traveling to the bank to cash paychecks
- Reducing the amount of dependence they have on friends and relatives to pay bills for them
Prepaid payroll cards are quite simply the ideal payroll alternative for any organization still administering paper paychecks. Paper checks are far more costly and inconvenient, not to mention more harmful to the planet. With prepaid payroll cards, employers and employees alike can spend less time and energy dealing with the many hassles associated with paper paychecks.