Practically everyone looks forward to payday. However, for those who face delays in cashing their cheques, such as long queues or closed banks, the fun ritual of payday can quickly become inconvenient. For the employer, payday can be costly with the monthly or weekly expenses of printing, mailing, tracking, and reconciling cheques. Electronic alternatives, such as Prepaid Payroll Cards, are a big way employers can ease the payroll process for themselves and their employees.
Below are 5 big reasons why prepaid payroll cards are better than cash and cheques:
1. An easier way to pay
Using prepaid payroll cards streamlines the entire payday process, making payday faster, easier, and more cost effective for everyone involved. They are especially useful for paying contract, seasonal, temporary, international, and satellite office employees, as prepaid cards are less expensive to issue than cheques. Plus, they are safer and more efficient than paying wages with cash. The whole payday process becomes much easier for both employers and employees with the use of prepaid payroll cards.
2. A better way to get paid
Regardless of whether your employees have a bank account or not, prepaid payroll cards offer a safe alternative to cash and cheques. With prepaid payroll cards, employees have immediate access to their wages, allowing them a better way to manage their money. Employees can use the card to pay bills, withdraw cash from ATMs, and make purchases online or in-store, without waiting for their cheque to be processed.
3. Cost Effective for Both Sides
Prepaid payroll cards are incredibly cost efficient for both employers and employees. For employers, using prepaid payroll cards instead of traditional cheques reduces payroll overhead expenses, including the cost of cheque printing as well as the expense of replacing lost or stolen cheques. For employees, prepaid payroll cards save them the cost of cheque-cashing fees.
4. Prepaid Cards are more Convenient
A huge benefit of prepaid payroll cards is the ability for administrators to easily track and reconcile payroll disbursements online. This function streamlines the payroll management procedure, making payroll much more convenient. Payroll cards are convenient for employees, as they will have immediate access to their wages—no more waiting to cash their cheques, plus, they won’t even be required to have a bank account to receive their wages. Employees can also use their prepaid payroll cards for recurring payments such as rent, utilities, and car payments, as well as for online and in-store purchases. Not only that, but prepaid payroll cards also give each individual cardholder the ability to check their balances, track their expenditures, and view monthly statements online, whenever they want.
5. Greater Security
Prepaid payroll cards offer a safe payroll alternative to cash or cheques. They reduce the risk of cheque fraud and provide a dependable audit trail for administrators. Employees will also feel more secure as the card itself is PIN protected, which minimizes potential fraud. Providers of prepaid payroll cards can also quickly and easily arrange for card replacement in the case of lost or stolen card.