Simply convert to “Paycards”. Payday at more and more business across the country no longer means that employees must get in line to get a checks. In fact, more and more employees aren’t getting checks at all. Instead, many employees simply visit a bank machine and withdraw part or all of their pay using a debit card (also referred to as a “Paycard”).
It looks and works just like a standard debit card, but there’s a twist. Any of the employees using Paycards don’t have bank accounts. By offering this option to their employees, business owners reduce the time, cost, and possible challenges associated with producing paper paychecks.
Many employees are “unbanked” and can’t get their net wages via a direct deposit. Paycards are a way for them to get their pay without having a bank account and without having to pay exorbitant check-cashing fees. Paycards reduce employee payday hassles too; no more standing in line to get a check or waiting for the manager to pass them out. No more leaving early on payday to drive to the bank or check cashing establishment to “get in line”.
Paycards can also build employee satisfaction and loyalty. They save workers the semi-larcenous 10 percent charged by the typical check-cashing store, are safer than carrying cash and can’t get lost in the mail. What’s more, they’re handy financial-management tools, and not just for unbanked employees. Paycards are truly a win-win solution for employer and employee to payday challenges.
Employees can access their pay either by withdrawing cash at any ATM or by using the card to make purchases and get cash back. The company’s payroll vendor tracks all the debits and credits for each paycard, sends out paper pay stubs and tax forms and provides a way for employees to check their balances either online or by phone.
The cards are also far more convenient, especially for business owners who rely on part-time or young employees or workers who have recently immigrated to the U.S. – anyone who might not have a bank account. (About 17 percent of U.S. workers fall into that category.)
The cards are as easy to manage electronically as direct deposit, they eliminate the expense of printing and distributing paper checks, and they ensure that everyone gets paid on time and in full – benefits for any growing company.
For more information on how you and your employees can benefit from the use of Paycards, please contact your LL Roberts Group Representative today at 877.878.6463.