For businesses in certain sectors, the workforces concerned could benefit from having their wages paid onto a prepaid payroll card.
For example, the potential of these cards to assist those in the construction or healthcare industries is huge, as funds can be transferred onto the cards with relative ease.
Not only does this cut costs relating to processing the payroll – especially in cases where cheques are widely used as methods of payment – but it also improves efficiency.
A prepaid debit card can be loaded up for the employee and then they are free to spend their hard earned money however they please.
Improving the payment process
Paying a workforce in this way means they do not to handle cash or cheques, while they can still make purchases both online and on the high street.
This removes the inconvenience of exchanging cheques for cash and puts the individuals in more control of their finances.
In addition, it also provides people with a Debit Card that can be used to cover situations when paying by cash is not an option.
Meanwhile, the need to carry cash is reduced as cardholders can use their cards as an alternative.
Having payment methods set out in this fashion can carry a number of benefits to both the employer and employee, making them a viable alternative to cash or cheque payments.
The employer can benefit as cheque and cash management handling costs are reduced, which should also have a positive impact on any additional bank fees.
At the same time, the risks associated with fraud are also reduced while employees can be paid instantly at a time that suits both parties.
The payments can also be done automatically, reducing the administration costs of creating and distributing cheques – a difficult and time-consuming task if many employees are involved.
Specific company cards can also enhance an employee’s awareness of the brand, creating a sense of loyalty to the company in the process.
As payment is direct, employees do not need to wait in order to cash cheques, meaning finances can be accessed from the moment they clear into the account.
They can also access online markets to purchase goods, while employees can see their account balance and history via text or online.
This ease of access provides them with the freedom to manage their payments, while the risk of fraud is reduced as the cards will not be linked to their own accounts.
Some cards also carry Chip and PIN features to further enhance the security that they provide.