Why Companies Use Payroll Debit Cards
Some people find it hard to get to the bank. Others just don’t have access to getting a checking account to cash their checks. For various reasons, people have needed alternatives to their payroll check cashing needs for years. Many companies have come up with a solution that saves them money and helps their employees. By using payroll debit cards to issue paychecks, people don’t have to worry about cashing their checks, and the company can save money on check printing and distribution. It is far more cost effective for a company to upload paychecks to a debit card than it is for them to distribute paper checks to all of their employees.
You can use payroll debit cards just like regular debit and credit cards. As long as the money is there, you can spend it anywhere that accepts Visa or MasterCard, depending on which logo is on your card. Originally, companies issued standard ATM cards for employees that didn’t have the debit capability, but lately more companies have been turning to the use of payroll debit cards to make payday more efficient for the company as well as the employee.
The use of payroll debit cards is seen a lot in factories and other large companies where there are more than 200 employees to manage on the payroll. It allows companies to streamline their payment processes, and they can also benefit by collecting ATM surcharge fees to help cover the cost of holding and distributing all of these cards. Some companies make this an option for employees, while other companies mandate that employees are paid via a company debit card. It’s not much different than having a company bank or credit union to cash your checks without having a traditional bank account.
Payroll debit cards are a great innovation for many reasons. They cut down on the use of paper and printing supplies for companies, and allow employees to access their money more easily and quickly. Although companies are still required to send out pay stubs, they’re still saving money and time in the payroll process. Whether a company has 50 employees or 500, payroll debit cards can be a great alternative to traditional paychecks. It’s more cost effective and convenient for everyone involved, and takes the hassle out of payday. Overall, payroll debit cards are a great asset to any business, both for the employer and the employee.