Make a Referral
Refer a company to BenefitMall
Press & Media Center
Get all the facts and information you need
Video Library
Watch our latest videos and demos on our new video library
Skylight Paycard

Three Compelling Reasons to Use Payroll Cards


Employers looking for a convenient and secure way to pay their employees should consider using paycards. Also known as payroll cards, paycards establish an account to which a debit card is associated and to which the employee’s pay is electronically deposited. Payroll cards offer employees the convenience of mobile banking, the ability to use their card to make purchases, and the same security that bank-issued debit cards hold. Offering this service rarely costs the employer anything and is generally of minimal cost to the employee.

Here are three compelling reasons to consider paycards:

1.       Immediate Access to Pay

Because an employee’s pay is electronically deposited to the card account, employees have access to their pay without visiting a bank or check cashing service. Although many paycard accounts have associated fees, employees can typically access the full amount in their card account at least once a month without incurring any fees. Employees who are located in a different state or on vacation will have immediate access to their pay. And if the card is lost or stolen, access to the funds can be restored quickly and easily by transferring the original account to a replacement card.

2.       Unbanked Households

According to the FDIC, in 2011 there were approximately 17 million U.S. adults living in households where no one in the household had a checking or savings account. Known as the unbanked, these individuals are more likely to rely on non-bank check cashing services, often paying check-cashing fees, in the range of 1.5 – 3.5 percent of the check amount. In comparison, American Banker Magazine reports that a bank’s monthly fee income per paycard is approximately $1.75, a relatively minimal cost to the employee.  

3.       Natural Disasters

Each year, natural disasters across the United States bring extreme challenges to the people cleaning up the mess left behind. In 2012, 776,000 people were displaced by Hurricane Sandy alone; employees were unable to reach their place of employment and businesses were forced to close or work at reduced capacity.

One of the challenges that businesses have under these circumstances is paying their employees. Although payroll companies may be affected by the storms, most have the ability to shift payroll processing for affected offices to other locations and keep their clients’ payroll running on time. However, shippers and local couriers may not be able to physically deliver the payroll checks in the storm zones and employees may not have the ability to pick up their check or go to the bank to access their funds. Setting up a payroll cards program in your company can help you and your employees have peace of mind if disaster ever strikes.

Offering the security and convenience of payroll cards is a great way to serve the needs of your employees. Reach out to your accountant, banker or payroll representative to set up a paycard program that works for your employees and your company.

Share:

Add your comment

 
 

 

Syndication

Subscribe Me

Enter your email address:

Delivered by FeedBurner

Archive

First Name
Last Name
Company
Email
Phone #
Zip Code
# of Employees