Why You Need To Seriously Consider Using Payroll Debit Cards
According to figures from the American Payroll Association, only three percent of its members are using payroll debit cards, also known as Paycards, at present. However, about half of the associations 22,000 members are looking into using these types of cards in their payroll system in the future. Although there are already a number of banks who offer such services for more than a couple of years, not many are aware about these so-called Paycards. For those employers out there who are interested on this new system of paying wages, you can read on to learn more about this type of debit card.
Even if the US is considered as one of the most technologically advanced countries, there are a lot of companies that still use checks as the primary payroll system. There are many areas in the country that are not using payroll debit cards. However, those employers and companies that have started to use this system of paying out wages are really very satisfied with this new bank service. For small to medium businesses that mostly employ students or new immigrants, using Paycards can be very beneficial not only for the owners, but also for their workers.
One of the benefits of payroll debit cards for employers is a drastic decline in payroll processing costs. Loading Paycards usually cost employers 20 cents per transaction. However, paper checks are worth about a dollar (or sometimes even two) each. So, even if there may be a one-time cost for each debit card, your company will see a return on investment in no time at all. This option is also a very convenient option for companies who are employing part-time workers that do not have bank accounts. Believe it or not, about 17% of the workforce in the US actually does not have any bank account. Also, a debit card payroll system can help growing businesses in managing their payroll electronically.
Employees also enjoy various benefits from payroll debit cards. First, employees do not have to pay exorbitant fees to check cashing shops just to encash their salaries. Some of these shops actually charge 10% for every check that they cash in. Also, cards are safer to carry than cash. Besides, you can also use Paycards as debit or credit cards. So, employees can conduct online transactions and even pay their monthly bills online. Come to think of it, with payroll debit cards, both employees and employers can be happy, contented, and protected.
