|
Payroll cards are a cost-effective, practical way to put pay in an employee’s wallet without the expense of printing and mailing a physical paycheck.
It’s plastic and looks like a credit card. But there’s no line of credit involved, and no need for the employee to set up a bank account. Each payday it gives the employee prompt access to net wages. The cards work in ATM machines, and some cards work just like branded “check cards.”Payroll cards save employees the hassles and cost of having a check cashed and in many cases provide bill paying features that are far more convenient than the alternatives. Payroll cards also offer solutions for a mobile workforce – value is stored in central accounts that are managed either directly by employers, by banking partners, or by money card service providers. The payroll card is the ideal solution for the millions of unbankable employees in the U.S. For a growing number of employers, the payroll card is the route to 100% participation in paperless pay.
Why the growing interest in payroll cards?
- Over 25 million wage earners in the U.S. do not have an account with a financial institution today.
- The unbanked cash 180 million checks a year, often paying high fees at check-cashing stores, and traveling to inconvenient and often unsafe neighborhoods.
- Business travel and company transfers make printed checks impractical for growing numbers of employees.
- Payroll card providers have built up a pool of experience in meeting employee needs, making the payroll card solution competitive for more companies.
- Payroll card providers have improved their solutions and are offering greater ease of use for employees. Some vendors offer cards that work at as many as 350,000 ATMs and provide purchasing power at millions of point-of-sale terminals in retail outlets across the U.S.
- Payroll card solutions are available now that give employees the option of turning the payroll card-based wages into a traditional paper based check at no cost.
|
