How Does a Payroll Debit Card Benefit Both Employers and Employees?

Businesses are constantly looking for ways to be more efficient and streamline their operations. But one area they tend to overlook is payroll. The traditional method of issuing paper paychecks just doesn't make sense anymore. Paper paychecks are costly to produce, force employees to wait several days until they can access their wages, put more stress on the environment, open the door to identity theft, and increase a business' exposure to liability.

Savvy businesses are embracing a new trend in the payroll industry: the payroll debit card. Payroll debit cards enable employers to pay employees quickly and easily, and allow employees to receive and use their paychecks without any hassles, wasted time, and unnecessary costs.

What is a Payroll Debit Card?

Payroll debit cards essentially work like a bank account. An employee's wages are automatically loaded onto the card via direct deposit. This gives employees instant access to their money through an ATM and at virtually every branch of every bank in the world. They can also use the card to pay bills, make purchases, and transfer money-all without a bank account. This makes payroll debit cards especially beneficial because unbanked and underbanked employees can use 100 percent of their wages without having to pay banking and check cashing fees. Payroll debit cards are also FDIC-insured and can be integrated with virtually any payroll system.

Payroll Debit Card Advantages for Employers

There are low to no initial startup costs for employers using payroll debit cards. After the initial startup fee, if any, employers eliminate the recurring costs associated with paper checks. Employers decrease their use of ink, printer, and computer charges, and reduce the amount of time payroll specialists spend issuing checks. Some other advantages include:

• Low-cost availability for any size company in any industry
• The ability to direct deposit 100 percent of employee pay automatically each pay period
• Reducing bank service fees
• Eliminating the liability associated with paper checks-now the bank is liable for the employee's funds
• Decreasing the number of paper checks created and distributed, which limits exposure to check fraud and identity theft
• Reducing the use of natural resources by going green-and saving money in the process
• Increasing employee satisfaction and retention

It is not just the employer who benefits from a payroll card. Employees can take advantage of benefits that include:

• Immediate access to their wages
• No more check cashing and banking fees associated with paper checks
• No more waiting for checks to arrive in the mail or having to pick up paychecks in person
• Avoiding lines at banks to cash their paper paychecks
• Access to their money 24 hours per day
• Security in knowing they no longer have to carry around paper paychecks and the relief of knowing that their payroll debit card is FDIC-insured
• Making direct purchases that draw on wages, rather than transferring funds to a different bank account to access them

Lastly, low-income employees, or those with poor credit history, are able to skip the hassles of finding a financial institution willing to open an account for them. These individuals do not need a bank account since their payroll card operates as one for them.

Payroll debit cards provide an innovative way for employers to distribute wages to their hard-working employees. This smart alternative reduces high costs, gains operational efficiencies for the business, enhances employee security and control, and allows employers to customize their payroll program. It's quite simply the most convenient, flexible, and cost-effective system for both employers and employees.

Learn more about the benefits of a payroll debit card for your business by visiting http://www.CardFlexNow.com or by calling 866.634.3044.

Andy Phillips is the president and CEO of CardFlex, a leading provider of innovative merchant processing services and prepaid card solutions. A 28-year veteran of the payment processing industry, Andy leads the CardFlex team to help businesses of all types and sizes in a wide variety of industries reduce costs, increase sales, and better serve their customers with customized merchant processing services. CardFlex also provides an elite suite of prepaid card products that enable businesses to automate their payroll systems, significantly reduce costs, simplify reconciliation, improve employee satisfaction, and even create loyalty programs to increase revenues.

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