A highly challenging task for businesses these days is handling payroll activities. From dealing with the paperwork and the complex procedures to facing the risk of cheque fraud on a regular basis, the inefficiency that traditional cheque payments bring are considered to be inconvenient and are a burden to any accounting team. These reasons, amongst others, are why businesses are switching to prepaid payroll cards as their primary payroll solution.
Prepaid payroll cards work just like a debit card issued from a bank. With it, employers can pay salaries directly to employee’s cards on payday easily. A number of key benefits of using prepaid payroll cards exist. Here are a few:
1 Simplified Procedures
Payroll can be a hugely time consuming task for businesses. The practice of paying employees their contracted salary through loading funds onto their prepaid payroll card electronically greatly simplifies and cuts-down on the work load and time cost. After each payroll cycle, receipts can be issued. This means that all the traditional hassle with regards to accounting activities are no longer applicable.
2 Saves on Costs
Studies have shown in-house staff responsible for mailing and printing pay-cheques to result in sizeable financial outlays that accumulate and is reflected in your business payroll expenditure over time. The use of prepaid payroll cards can eliminate this antiquated process. It greatly reduces your monthly printing costs and also reduces your organization’s reliance on traditional paperwork when dealing with payroll.
3 Reducing Banking Fees
A large quantity of employees can prove costly when relying on financial institutions, as their cheque handling and banking fees add up. These costs accumulate to large sums over time, especially for sizeable companies with massive headcount. Eliminating the use of pay-cheques would be the simplest and most effective way to streamline your entire payroll system as well as reducing the costs accrued from banking fees. These reasons show prepaid payroll cards are the best alternative method. While there are sure to be certain service charges from your card provider, but this pales in comparison to traditional banking costs.
4 Avoiding Frauds
The use of the traditional cheque payroll systems brings along with it the drawback of potential cheque fraud. With the use of a prepaid card system, your organization can easily eliminate this risk, as your staff cannot duplicate the card nor alter the information contained within it. Also drastically reduced are payroll inefficiencies. All while streamlining the accounting tasks in conjunction with offering heightened security.
5 Staffs Benefits
Prepaid payroll cards provide benefits not only to your business, but to your employees as well. In addition to enabling your staffs to instantly have access to the funds loaded, it also grants extra security on both ends of the spectrum as well. It is an extremely user-friendly system, even for those with difficulty securing a traditional bank account due to bad credit history or other reasons. Traditionally, no credit check is required as part of the process of obtaining a prepaid payroll card account – this meant anyone had the chance to be a card owner. For those employees who did not originally own a credit or debit card now have a means to activities such as online shopping and more with their prepaid cards. Overall, this makes it a really beneficial payroll solution for both the employees and the employer.
Please visit www.transact24.com for more information about prepaid payroll cards.