What is a payroll card, and why do businesses use it?
This year, there are about 14.1 million American adults that don’t have a bank account. For many, financial services can be too expensive. A payroll card is a new way to help employers save more money and employees receive salaries faster.
Want to know more about it? In this payroll card guide, you’ll learn more about how they work and their benefits.
Payroll Card Definition
A payroll card is an electronic way employers provide salaries for their employees. Payroll cards, the same as direct deposit, are an alternative form of payment. Every payday, the employer deposits their worker’s net paychecks in the payroll card.
The worker can later use the payroll card wherever to get cash, purchase items, and pay bills. The employer handles examining card vendor choices, settling card features, and costs. The vendor provides cardholder disclosures and card packets plus customer service.
When getting payments through a payroll card, your company will issue a payroll card or reloadable card. A payroll card resembles a debit card but isn’t bound to a bank account.
You can further add extra money to the card if you have other funds. For companies, a visa payroll card can be an affordable alternative to paper paychecks.
Payroll Cards Benefits
Learning the payroll card benefits might serve you to decide if this is a great payment choice for you. Employers and employees can benefit from payroll cards. It’s a great method to save money and time for both parties.
Benefits of Payroll Cards for Employers
Employers can save a lot of cash and reduce the need to print paper checks, envelopes, and ink. You also don’t have to worry about losing, wrinkling, and damaging the paper checks anymore.
Other benefits include:
- The low initial start-up expense
- More reliable
- Reduces the risk of check fraud
- Improves employee morale
With a payroll, employees can feel financially secure, increasing employee happiness. It’s also much more environmentally friendly and is available for all types of businesses.
Benefits of Payroll Cards for Employees
Employees can enjoy immediate access to their money with a payroll card. Paper checks often have many delays, taking about two to five business days to process.
You can use a payroll card to purchase items in places that accept debit cards for payments. Not only that, but employees can also have discounts at various participating retailers. Payroll cards like the ones from Payactiv offer a discount program, allowing you to save on purchases.
Start Using Payroll Cards
It’s difficult to be on the constant lookout for new ways to reduce expenses and streamline operations. However, with payroll cards, you enter a win-win situation for both employers and employees. Employers no longer have to pay for paychecks, and employees can easily access their salaries.
So, now you know the answer to “what is a payroll card?” We have so much more to offer you. Take a look at the rest of our guides with more payroll card tips and advice.