Whether you are in charge of handling the payroll exercises for your small business or have an accounting team responsible for bookkeeping, prepaid payroll cards are something you should definitely consider, as their use could prove to be extremely beneficial to both you and your employees.
Paying with cheque or direct deposit can bring drawbacks, such as operational inconvenience and additional cost, risk of identity theft and other related potential frauds. A prepaid payroll card works and functions much like any other bank issued card, enabling you to load sums directly onto the employee’s card with ease when payday comes around.
Here are some notable advantages of changing to a prepaid payroll card.
Streamlining The Payroll Process
As an employer, you might be seeking for approaches to lessen the involved paperwork and to simplify your existing payroll procedures and processes. Payroll is typically one of the more labour intensive jobs of any accounts department, taking up considerable time and resources, however this is something that a prepaid card solution could significantly reduce. Ways in which this is impossible is a prepaid payroll solutions ability to wipe out the needs for cutting cheques, approving direct deposits, and numerous other bookkeeping tasks connected to overseeing payments to employees.
Avoiding Unnecessary Costs
For organisations who are printing their pay cheques in-house, a sizeable amount of investment is placed in to these printing costs and is often coupled with additional mailing costs, something that utilising a prepaid card for our payroll can mitigate altogether. Prepaid cards can also help to significantly streamline your payroll procedure, helping to reduce the staff hours required to complete it, yielding even more savings.
Reducing Banking Fees
Many banks charge handling fees for cheques, and these can easily accumulate to a sizeable amount when you’re paying hundreds of staffs. While most payroll cards do carry costs, it’s often the case that these are significantly less than banking fees applied to other, more traditional forms of payment.
Limiting Cheque Fraud Risk
There is an inherent risk of fraud when it comes to using cheques for payroll payments to your employees. Setting up prepaid payroll cards for your payments framework limits the potential risk of cheque misrepresentation or frauds, since employees can not duplicate or modify the card.
Not only can a prepaid payroll card framework assist in streamlining numerous bookkeeping procedures, it can also provide various advantages to your staff. Consider changing from conventional cheque payments and direct deposit to payroll cards, as this change could help you enhance and build upon efficiencies within your current payroll processing process.
For a handful of employees, particularly those with a poor credit history, gaining access to a personal bank account can sometimes be difficult, making a prepaid payroll card a great alternative in such cases. Payroll cards can also enable your employees to make purchases at places or on platforms where cash transactions aren’t possible, such as for goods and services bought online. On a side note, employees can utilise prepaid payroll cards immediately after they get paid, whereas traditional payroll methods can involve the inconvenience of having to wait to cash a cheque before they’re able to utilise the funds, something which can be extremely troublesome, especially if employees have urgent bills to settle.
Please visit www.t24payvault.com for more information on prepaid cards.