Payday is something greatly anticipated, but with lengthy queues and delays when cashing cheques, the day is not without its frustrations. For companies, printing, mailing, tracking and reconciling cheques can become a laborious, complicated task – far costlier than electronic alternatives.
That’s where prepaid payroll cards come in. Here’s why they are a better payroll option than cash or cheque:
1. It’s a better way to pay
Prepaid payroll cards make payday a breeze – not to mention cutting costs. Companies that make use of these cards experience a streamlined, safer employee payment process that’s far less expensive than paying wages by cash or cheque. It’s the perfect way to pay under-banked, contract, seasonal, temporary, and satellite office employees efficiently and easily – improving the payday experience across the board. The low issuing fee further contributes to cutting down payroll-related costs.
2. It’s a better way to get paid
No bank account? No problem. Prepaid payroll cards grant instant access to wages – a safer alternative to cash and cheques. It’s a smarter way to manage money – employees can use the cards in the same way as traditional debit or credit cards, without the hassle. One can easily withdraw from ATMs, pay bills and make purchases online or in-store.
3. Cost efficient for both parties
Prepaid payroll cards benefits both the employer and the employee. The cost of cheque-cashing fees is removed, and employees are given a safer, smarter way to receive wages, while employers enjoy reduced payroll overhead costs and time. Cheque printing expenses are eliminated, and costs are further reduced by removing the occurrence of lost or stolen cheque replacement.
4. It’s more convenient
Prepaid payroll cards make sense as the convenient solution to payroll management for employer and employee alike. For employers, tracking and reconciling payroll disbursements is easily managed online. Payment administrators are offered a far more convenient and truly streamlined experience.
Staff making use of prepaid cards gains access to their funds immediately. No bank account is needed, check-cashing queues are eliminated, and employees can check balances 24/7, tracking expenditure online or by printing monthly statements.
Prepaid payroll cards are also accepted globally, anywhere a debit or credit card can be used – in-store, online, or by phone. Recurring payments for rent and utilities can also be set up quickly, allowing staff to plan ahead for their expenses. The convenience of prepaid payroll cards affects all areas of financial management.
5. Enhanced Security
Employers are always looking for safer ways to deal with money, and prepaid payroll cards offer that. The PIN protected cards reduce potential fraud, and the payroll card provider can easily replace lost or stolen cards. For employers, prepaid cards provide a reliable audit trail, and employees have peace of mind that their wages are secure – never having to carry around large amounts of cash.