In recent years, there has been technological advancement in the business, as the use of payroll offering several advantages to both the employer and employees. This electronic wage payment plan is a considerably simplest and less expensive method of paying salaries compared to other modes of payment. The payroll cards are universally accepted making it possible for all the employees to join the program without having to open an account with financial institutions. Here are the advantages of using payroll cards.
Withdrawals using Payroll Cards
Payroll cards are usually issued by the employers to electronically transfer cash to their employees monthly. Employees can withdraw using their payroll card services through a bank teller or going to an ATM. Also, they can pay their utility bills, make online purchases and make physical payments using payroll cards, leading to Business growth.
In line with the federal Electronic Funds Transfer Act and regulations, employees are presented with the opportunity to choose a financial institution of their choice. This enables them to receive the deposit if the employer is offering direct deposits. The employer has to comply with the requirement by giving the employee an option of selecting deposits to accounts at the financial institution, or to their payroll cards.
Payroll Cards to the Employers
Payroll cards enable employers to save money, thereby contributing to the revenue growth for the business. This comes through eliminating the expensive paper paychecks which involved the cost of printing, issuing, distributing, processing, bank reconciliation and replacement of stolen or misplaced paychecks. New businesses opportunities operate in diverse locations and tend to spend a lot of cash in delivering the paychecks to their employees. With the revenue growth, business is presented with Acquisition opportunities in the form of business.
The elimination of the paper paychecks protects the environment from pollution, enabling the employers to realize their objectives of a sustainable environment. Paper paychecks can cause the emission of the CO2 to the environment. Payroll cards enable you to save money, which contributes to the Revenue growth for the business.
A payroll card service enables employers to make timely payments to the employees compared to paychecks. Also, employers have been capable of reducing the use of paper checks when paying salaries. The employers have been able to get high morale and productivity from their employees due to prompt payment of wages, resulting in the business growth.
Benefits of Payroll Cards to Employees
Traditional banking services in most areas are either limited or unavailable, making it difficult for employees to access their cash. Therefore, payroll cards have greatly helped in curbing this problem. Moreover, the employee does not need to have an account with a certain financial institution to make withdrawals. A payroll card facilitates savings as employees do not incur any fees to get their wages, and no transaction costs when purchasing money orders for paying utilities.
Payroll card services enable employees to easily access their wages and conveniently pay bills and make purchases. With revenue growth, the employer can venture into new business opportunities such as Fintech solutions.