Payroll cards are taking the employment world by storm. The new payroll processing method is quickly replacing checks and direct deposits.
According to a study, there were up to 5.9 million pay cards in the U.S by 2017. The number is expected to rise to 8.4 million active pay cards by 2022.
But wait! What is a payroll card?
Pay cards are also known as payroll debit cards. They’re pre-paid reloadable cards that employers use to deposit the net wages of their employees on every pay period. The employees can use these payroll debit cards to withdraw cash, pay bills, and make purchases.
There are many reasons why pay cards are getting all the hype. Here are some of the advantages that employers get from using payroll cards.
1. You Don’t Need a Bank Account Payroll Cards
Believe it or not, some people don’t have a bank account. This has made it hard for them to get their monthly payments through bank deposits and paper checks. But as an employer, you don’t have to worry about this.
Payroll cards provide the best alternative to that as you won’t need a bank account to use this payment method. All you have to do is reload the cash, and your employees can have their money. This is the best way to make funds accessible to those law income employees.
People have different reasons for not having bank accounts, and you won’t criticize them for that. It could be some banking problems, or they think their money is too little to keep in the banks. Either way, such employees will breathe a sigh of relief, knowing that they don’t have to go to the bank to receive their pay.
2. Easy Access to Cash
With pay cards, you’re assured that your employees will get their pay immediately you deposit it. Even without a bank account, your employees can swipe at a POS or make withdrawals from an ATM. They can also make their purchases and pay all their bills online.
Pay cards enable employees to make any form of a transaction the same day the funds are deposited. They are not bound by business days or hours to wait as in the case of banks. We’ll know that when your employees are paid on time, they’ll be more motivated.
3. No Cashing Fees
Some states have imposed strict rules on the use of pay cards in that there are no fees deducted during cash withdrawals. This is different from checks where you’ll have to pay some fees for cashing services. What a better way to impress your beloved employees than to send their paycheck without any deductions?
While some transactions through these cards may require a small fee, it isn’t something to worry about. With no fees on transactions and withdrawals, payroll debit cards indeed offer low-income earners the best way to receive their money.
4. Payroll Cards Are Accepted Widely
Easy access to cash from anywhere is one of the reasons why many people like pay cards. Pay cards are like traditional debit cards which are widely accepted. As long as you get a participating merchant, no one is going to stop you from using these cards.
What’s more, these cards are ATM-friendly, meaning you can access your money from any ATMs spread all over. However, you should know that some cards may place a limit on the number of transactions you can withdraw at an ATM.
5. Pay Cards Provide a Pseudo Saving Account
Some people have a bank account already, but they still choose to use pay cards anyway. Others use both payment cards and bank accounts because they can set aside some money in the cards for saving. It doesn’t matter the period your money stays in the account; you’ll access it when you need to.
Some people even say that they can keep money in their pay cards and forget about it for a long time. However, the money in your pay cards won’t gain any interest no matter how long it stays.
6. Payroll Cards Guarantee Social Responsibility
When you’re running a business, being socially responsible gives you an upper hand. Pay cards allow you to be good to the environment. You’re going to save on all the things that go into the printing of checks.
Pay cards are paperless, meaning no environmental degradation. You’re not going to need to use electricity for the printing neither will you pay shipping costs. Being socially responsible feels good for your company and places you ahead of the competition.
7. Easy Account Distribution
With pay cards, employers have the freedom to disperse money to a different account without any hassle. This way, you give your employees the freedom to divide their pay into a pay card and a checking account.
This way, they can use the pay card as their pseudo saving account. They’ll still have the amount they want to use in a different account.
8. Pay Cards Ensure Maximum Security
When it comes to money matters, there’re a lot of frauds involved; hence you need something more secure. Payroll cards won’t disappoint in this light as they’re safe and reliable. Employees do not have to worry about any forgery as the pay cards come with fraud protection.
The cards also insured FDIC, which works together with the fraud protection to ensure maximum security. If one of your employees happens to lose their card, they’ll not worry about anyone accessing their funds.
Introduce Pay Cards to Your Business and Reap the Benefits
A payroll card is the best thing that can ever happen to your business. This card will not only save money, but it will also keep your employees happy and improve their retention rates. With all the benefits payroll cards bring, you wouldn’t want your business to miss out on it.
With all that information, you wouldn’t want to miss anything that means well for your business. Well, we mean well for your business and always ready to give you all the advice that can help your business grow. Browse this site for more informative articles.
