How Pay Cards Are Changing the Way Companies Pay Employees
It’s 2016, and we are living in a fully digital world. However, companies still tend to operate with expensive and antiquated processes, like using pen and paper to log employee time, to enroll in benefits programs, or probably most prevalent, paying employees with paper paychecks. Not only does this cost money for printing and postage (anywhere from $3-5 per employee, per paycheck), but it wastes a ton of employee time and paper. Luckily, there is a simple solution: paying your workers with employee pay cards!
How Do Employee Pay Cards Work?
When employees don’t have bank accounts for direct deposit, pay cards are a great alternative to paper checks. Instead of printing and mailing a paycheck to workers, wages are deposited onto a pay card, much like a debit or credit card. Employees can access their money from an ATM, or use the card anywhere where credit cards are accepted.
Benefits of Pay Cards for Employers
When a business implements an employee pay card program, the company can see the benefits right away. Pay cards free up the hands of HR and payroll departments, as processing paper paychecks takes much longer than a digital transaction. Plus, you’ll instantly save money on printing and mailing expenses, including the cost of potential replacement checks.
Benefits of Pay Cards for Employees
While this sounds good to you as an employer, it’s important to note that it is illegal to mandate that employees use pay cards instead of paper checks or direct deposit. That being said, it’s not hard to get your workers on board when you communicate how they can benefit from pay cards, too. Employees who are paid via pay card experience more privacy as they don’t need to give out their bank account information. Additionally, pay cards are a faster, more reliable way for employees to access their wages and provide added protection to their funds with a pin number.
Employee pay cards are the answer for companies to pay their employees in today’s digital world. Pay cards provide an easy and affordable way to process payroll, one that is favorable for both employers and their employees—saving you time, money and paper!
Learn more about EPAY’s pay card program.