Payroll debit cards are also known as paycards and function in the form of stored-value gift cards. These cards can offer attractive and affordable payroll solutions to small-scale business establishments consisting of 50-500 employees.
A debit card payroll system has proved very effective for large business organizations; however, it has been rapidly making inroads in many small and medium-scale enterprises (SME’s). To implement a debit card payroll system, employers need to create a central payroll account in a bank. They also need to issue payroll debit cards among their employees.
On the pay day, employers can send money directly into the payroll account. The employees can thereafter collect their respective wages through the payroll cards provided to them.
The central payroll account is managed by the company’s payroll vendor. The payroll vendor or service provider performs the task of tracking all the credits and debits for every paycard, distributing tax forms and paper pay stubs and enabling the employees to check their account balances either through phone or Internet.
Debit card payroll services eliminate the use of paper checks. Thus, companies save money that is spent on printing paper checks. This is very helpful for small businesses in cutting down expenditures and saving a substantial amount of money.
Apart from this, even employees who don’t have savings or checking accounts can use payroll debit cards. Therefore, the payroll debit cards can be very beneficial for business establishments that employ seasonal or temporary employees.
With payroll debit cards, employees can receive money from different countries. These cards can also be used by the employees to get cash back or make purchases. Since these cards operate in the same way as prepaid credit cards such as Visa and MasterCard, employees can use them to pay their shopping bills. Besides, employees can use these cards as prepaid cards to pay their monthly bills.
Overall, payroll debit cards are very advantageous for both employers and employees. A number of companies have reaped the benefits of employing debit card payroll system.
A debit card program or prepaid card program can be very beneficial for various small business organizations.