Payroll Cards Are Catching On: Here Are Three Reasons Why
It wasn't too long ago that payroll cards were considered a novelty in our industry. Few companies used them, and those that did were more likely than not to only have a few employees taking advantage of them. Things are changing, though. Payroll cards are beginning to catch on more and more. The payroll card industry is growing steadily as a result. Visit: https://employers.benefitmall.com/Payroll-HR-Essentials
It wasn't too long ago that payroll cards were considered a novelty in our industry. Few companies used them, and those that did were more likely than not to only have a few employees taking advantage of them. Things are changing, though. Payroll cards are beginning to catch on more and more. The payroll card industry is growing steadily as a result. Visit: https://employers.benefitmall.com/Payroll-HR-Essentials
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<strong>Payroll</strong> <strong>Cards</strong> <strong>Are</strong> <strong>Catching</strong> <strong>On</strong>: <strong>Here</strong> <strong>Are</strong> <strong>Three</strong> <strong>Reasons</strong> <strong>Why</strong><br />
It wasn't too long ago that payroll cards were considered a novelty in our industry. Few companies used them, and those<br />
that did were more likely than not to only have a few employees taking advantage of them. Things are changing, though.<br />
<strong>Payroll</strong> cards are beginning to catch on more and more. The payroll card industry is growing steadily as a result.<br />
<strong>Payroll</strong> cards are described by some as a cross between a prepaid credit card and a bank-issued debit card. They are<br />
ideal for employees who do not have regular bank accounts into which they can deposit checks or electronic transfers.<br />
They represent just one of the many options employers now have to pay their workers.<br />
If your company has been thinking about the payroll card option, you might consider the following three reasons<br />
explaining why the cards are starting to catch on:<br />
1. Many Workers Appreciate Them<br />
First and foremost, many workers now appreciate the option of having the payroll card. Consider the employee who<br />
doesn't have a regular bank account. While this may seem foreign to most of us, there are large numbers of people who<br />
do not utilize the banking system in any way, shape, or form. This presents a problem on pay day.<br />
If you do not have a bank account, you cannot take advantage of direct deposit. So how do you cash a check? People go<br />
to a check-cashing store, a local bar or restaurant, or even the customer service department of their grocery store or<br />
big-box retailer. They can get their checks cashed in any of those locations. But it comes with a price. A certain amount is<br />
deducted from the check as a service fee.<br />
Workers appreciate payroll cards because they work just like a debit or credit card. There are no checks to cash, no<br />
check-cashing fees to pay, and no need to carry cash around in your pocket.
2. States <strong>Are</strong> Improving the Regulations<br />
<strong>On</strong>e of the big downsides of payroll cards are the various state regulations that seem incohesive at times. The good<br />
news is that states are beginning to improve their regulations in order to make them fair to both employers and<br />
employees. The more those regulatory issues are settled, the less fear there is among employers.<br />
A big part of the regulations in some states is figuring out what is acceptable in terms of service fees and charges. <strong>On</strong> the<br />
one hand, forcing employees to accept payroll cards that charge them for every transaction is, in a legal sense, forcing<br />
them to take less than the full pay they are due. <strong>On</strong> the other hand, employees who voluntarily accept payroll cards are<br />
also accepting the fees and charges that might come with them. Regulators want to protect both parties.<br />
3. More Providers Coming <strong>On</strong>line<br />
Finally, payroll cards are gaining traction because more providers are coming online. A long list of startups is offering<br />
payroll cards with a variety of additional services. But the startups are not alone. Major players, like Visa and MasterCard<br />
for example, are also getting in on the payroll card market.<br />
The more providers there are, the more the competition between them helps to keep fees and charges in check. That is<br />
good for both employers and their workers in the long run.<br />
If you would like to learn more about how payroll cards could benefit your workers, feel free to contact us and speak<br />
with one of our representatives. BenefitMall offers a full line of payroll and benefits administration services suitable for<br />
businesses of all sizes in every sector.