Paychecks and direct deposits are two ways for businesses to pay their employees, but payroll cards should also be considered as an option for wages and bonuses.
That’s because payroll cards are reloadable prepaid cards that can be offered as a way to electronically deposit employee pay.
These can be great for employees who don’t have or can’t get a regular checking or savings account at a financial institution. They can be used like debit cards for making purchases in person and online, for withdrawing money, or even for paying bills.
Payroll cards can save your business the hassle of printing and delivering paper checks and they can help improve your cash flow.
Your employees will benefit because the deposited money is available immediately on payday, which means workers don’t have to wait for a check to be delivered and they won’t have to go to a branch to deposit their money or risk a check getting lost or stolen. They can also avoid costly fees at check-cashing stores, they can check their balances online, and they won’t have to carry large amounts of cash.
Employers generally work with a financial institution to set up the program and the institution issues the payroll cards and holds the money loaded onto the cards.
Unlike a regular bank account, however, no money other than payroll can be stored on the account.
Working with a payroll card provider such as a financial institution, businesses should determine how much it would cost to implement a payroll card program and what fees employees could face when it comes to using their cards. It will also be important to know what your state requirements and guidelines are for payment options.
Schedule an appointment with us to discuss how you could set up a payroll card program and how your business and employees could benefit.