How Can Payroll Debit Cards Lower Payroll Expenses:
by Jason Moore
Payroll debit cards can provide attractive payroll solutions. A debit card payroll system can be very profitable for small companies consisting of 50-500 employees.
To start a debit card payroll system, employers have to open a centralized payroll account in a bank. They also need to distribute payroll debit cards to each of their employees. On the payday, the employers can send money into the centralized account, from where all the employees can withdraw their salaries by using payroll debit cards.
Payroll debit cards can prove advantageous for businesses having seasonal or temporary employees, who may find it difficult to create a savings account. This is because, the payroll debit cards can be used by the employees even in the absence of a savings or checking account. Employees can receive money from almost any foreign location and withdraw it using their payroll debit cards.
A debit card payroll system can lower the payroll and payout expenses by simplifying and economizing the payment process. It also eliminates the costs associated with printing paper checks by negating the usage of paper checks. In comparison to paper checks, which cost $1 to $2 each, payroll debit cards cost just about 20-50 cents for being loaded.
Payroll debit cards function in the same way as prepaid credit cards such as Visa and MasterCard. Hence, they can be used by the employees in the same way as prepaid cards while shopping or making payments towards their monthly bills.
Payroll debit cards are better financial tool than cash, as they are safer and more convenient to carry. In an event of theft, payroll debit cards can be easily deactivated. Besides, the lost card can be easily replaced and it's value restored. Most payroll service providers offer 24/7 assistance to clients.
Payroll debit cards can thus benefit not only the employers but also the employees of the small companies. Many business entities in Singapore, Germany, Brazil and Malaysia have profited from the debit card payroll system.