Top 5 Employer Advantages of Payroll Cards.
Payroll cards have become an increasingly popular way to provide direct deposit wages to employees who may not have a checking account. Payroll cards are typically Visa® or Mastercard® reloadable prepaid debit cards issued through banks or other financial institutions. With payroll cards, employers can take advantage of direct deposit’s convenience and immediacy over print checks by transferring wages onto cards — just as they would into a bank account. There are many advantages to using payroll cards over paper checks.
1. Reduce payroll expenses
Employers can save approximately $2 on each wage payment delivered to a payroll card rather than issuing a paper paycheck. These savings include staff time and resources as well as hard costs of paper checks, printing and mailing supplies.
2. Increase direct deposit participation
Payroll cards provide employees with a direct deposit option that used to only be available to employees with bank accounts. Direct deposit participation can help businesses save on potential monthly bank fees from $50 to $149. Electronic deposits also eliminate the need to track and replace lost and/or stolen paychecks.
3. Eliminate out-of-cycle checks
Human resources departments know that out-of-cycle checks are a hassle and time consuming. Rather than manually processing a check, employers can transfer payments electronically onto an employee’s payroll card.
4. Reduce risk of check fraud
Payroll check fraud is the most common type of check fraud. Checks in general continue to be the leading way businesses experience fraud more than any other payment method. They are vulnerable to being stolen or counterfeited. Direct deposit to payroll cards can substantially reduce this risk.
5. Simplify reconciliation
Managing real-time payroll wages via direct deposit to payroll cards, businesses can better manage cash flow and day-to-day operations. Transferring funds electronically to payroll cards enables businesses to avoid hassles of missing checks or stopping payments.
Learn more about the CommercePayments® DirectCheck Payroll Card.
CommercePayments® solutions are provided by Commerce Bank.