A switch to prepaid payroll cards is highly beneficial to both employees and employers. No matter whether you’re handling payroll activities yourself, or have a team that does it for you, making the switch is something you should definitely consider.
Direct deposit and check payments are often a hassle. They are more open to fraud and identity theft. A prepaid payroll card offers none of this inconvenience, working the same way as a bank issued debit card, and employers can easily pay salaries directly to employee’s cards on payday.
Here are a few of the key benefits experienced when switching to a prepaid payroll card, or even any pre paid business cards.
Payroll processing tasks are simplified
Payroll is one of the most time consuming tasks for any business. Paying employees electronically simplifies and reduces the time spent, cutting down on paperwork and complex processes. Receipts can be easily issued after each payroll cycle, and there is no need for cheques, authorising direct deposits, or many other hassling accounting activities.
Reduce the risk of cheque fraud
Check payroll payments carry with them the big risk of cheque fraud. By introducing a card system, you can eliminate this risk, as employees cannot copy or alter the card.
Payroll inefficiencies are also drastically reduced. A prepaid payroll card system easily streamlines your accounting tasks, while at the same time offering numerous employee benefits. The security of all payments is greatly increased when using a card system instead of cheques.
Reduction in printing costs
Printing and mailing paycheques in-house results in large financial outlays that add to your business payroll expenditure. It’s an antiquated system that can easily be eliminated through the use of prepaid payroll cards. Managing your budget is much easier when you can reduce your reliance on traditional paperwork when issuing paycheques.
Reduction in banking fees
Paying a large number of employees each payday is costly when relying on banks, as check handling and banking fees add up quickly. Cutting out cheques is an easy and effective way of streamlining your payroll system, and prepaid payroll cards are the best way to do it. Payroll card services may charge fees for their services, but traditional banking costs can far outweigh this expense.
Payroll cards offer numerous benefits to not only employers, but also employees. Getting a bank account isn’t something that all employees can do easily, especially for those with a bad credit record. Payroll cards are an alternative that offers a similar money management system.
Employees can use their payroll cards to purchase online, which is a far easier method than struggling with cash. In addition, the funds on payroll cards can be used immediately, while cheques need to be cashed – resulting in unnecessary delays in acquiring funds.