Would you like to minimize or eliminate the following?
- Issuing of paper checks.
- Voiding and reissuing lost or stolen checks.
- Simplifying your payroll bank reconciliations.
- Filing and remitting of unclaimed wages.
If so, the payroll debit card might be your best solution. The payroll card is a convenient and cost effective method of offering your employees an electronic form of payment, which is very similar to direct deposit, without the need of having to open a checking or savings account. Depending on the type of program you implement, the payroll card may be used anywhere MasterCard or Visa debit cards are accepted.
How it works:
- Employees receive a payroll debit card and their pay is automatically loaded onto their card each pay period. This process works exactly like direct deposit.
- Employees can check their balance at any time by calling a toll-free number or checking online.
- All employees are eligible for the card. Credit checks are not required.
Employee benefits of a payroll card:
- Eliminates check cashing fees.
- No standing in long lines at the bank.
- Easy and quick access to funds.
- The card is transferrable. The employee can take it with them should they change or have more than one job.
- Employees can withdraw their entire balance at any financial institution where MasterCard or Visa debit cards are accepted.
Things employers should consider when selecting a vendor:
- Pay close attention to the fee schedule:
- The fee schedule may vary depending on the number of cards you process or the amount funded on the cards.
- Fees may be assessed to the employer, employee, or both.
- Choose a vendor whose cost is reasonable.
- Negotiate free client service support if feasible.
- Make sure there are an adequate number of ATM locations easily accessible.
When implementing a payroll debit card program, it is important to point out to your employees that there are fees associated with out of network ATM transactions. Although you will need to allocate additional staff resources to maintain a stock of instant issue cards for new employees or replacement cards for lost or stolen cards, the program does reduce costs associated with printing and mailing paper checks and streamlines your payroll processes.