Utilising prepaid payroll cards offers great incentives, whether you are personally responsible for managing payroll activities within your growing business or otherwise employing a team of accountants to handle the numbers. The application of this financial product can be exceedingly beneficial to both you and your employees alike.
The customary process of paying through the use of cheques or by direct deposit contains inconvenience that are not only detrimental but also incredibly risky due to the potential of identity theft and numerous other fraud related hazards. Prepaid payroll card operates just like any other traditional bank issued credit and debit card, which allows your company to load money directly to the employee’s cards on a specific day such as when salaries are due, otherwise known as payday.
Below are multiple key benefits of switching to and using a prepaid payroll card for business activities:
Decrease Payroll Handling Tasks
For the added benefit of efficiency and expediency, a busy business owner would be considering alternative ways to reduce unnecessary paperwork and streamline the various practices that are being handled. Payroll is generally one of the most labor demanding core tasks that businesses need to manage. Thankfully this process can be simplified through paying personnel electronically and supplying them receipts after each payroll rotation. This removes the necessity for cutting cheques, approving direct deposit payments, as well as simplifying all activities associated with managing payroll payments and accounting.
Minimize Printing Expenditures
Aimed at business owners who currently depend on the outdated method of printing paycheques internally, a substantial amount of asset is expended on printing charges. Additionally, there are businesses which still rely on mailing cheques manually to their workforce and contractors, where dispatching costs will unnecessarily increase your payroll expenses. Establishing a prepaid payroll card structure that encompasses the business’ employees can drastically decrease or otherwise eliminate running costs entirely helping you better manage your finances.
Moderate Banking Fees
Numerous banks charge cheque handling fees which can accumulate when a business is paying their ever-growing workforce on a weekly or monthly basis. Although certain companies still do charge fees for the use of payroll card facilities and several types of services, you will not be required to budget for banking payments once you are no longer distributing cheques.
Diminish Risk of Cheque Fraud
Conducting payroll payments using cheques is not only obsolete and time consuming, but also includes an inherent risk of fraud when making necessary payments. Preliminary set up of a payment system using prepaid cards reduces the risk of check fraud as personnel will not be able to duplicate or modify the card.
Apart from offering various benefits towards the day to day administrative operations, utilising a payroll card solution can simplify many of the financial and labor related tasks required. Ponder upon these outdated and obsolete methods and consider adapting from traditional cheque payments and using direct deposit to instead employing payroll cards so that many inefficiencies with processing payroll may be eliminated, while also increasing security and safety with all payroll related transactions completed.
On behalf of some employees, opening a bank account is not guaranteed to be an easy process, particularly for those that currently have a bad credit. On the other hand payroll cards offer comparable money management benefits. Additionally, payroll cards permit employees to complete transactions that cannot be completed using cash alone such as purchasing products when shopping online. Payroll cards can be used immediately and efficiently by your employees as long as sufficient funds had been loaded beforehand to maintain their balance.