By Bernie Nolan:
According to the Prepaid Market Sizing Report, the growth of pay cards is expected to quadruple from 2009 to 2017. This can most likely be attributed to companies discovering the significant benefits to the business and its employees as they move to pay cards and electronic wage statements. Here are some of the benefits that service providers’ clients see when offering employees paperless pay through pay cards:
- Cost Savings – Savings are estimated to be $2.00 to $4.00 per paper check when considering the collective costs of production, distribution (e.g., overnight delivery charges), and lost, stolen or fraudulent checks.
- Easy Enrollment – Cardholders can be easily enrolled using their name, address, and a government identification number that is entered through a secure web interface as an individual card enrollment, batch CSV type file upload for multiple card enrollments, or through an application programming interface with your payroll software.
- Easy Loading Process – Once enrollment is complete,pay cards have an easy loading process; some vendors provide one process to get this implemented while others have multiple options. For example, one way can be the insertion of the 16 digit card number as the checking account number along with an ABA routing number in an ACH direct deposit file for checking accounts. A second option can be pre-loading an instant pay account, enabling the administrator to instantly load a card (or multiple cards in a batch CSV-type file) through the secure web interface at any time of the day, 365 days a year.
- Helps with Compliance – A growing list of states allow for companies to mandate direct deposit to a checking account or pay card account. Many states are also providing specific guidance on distributing electronic wage statements.
- Employees Paid On Time – Pay cards serve to ensure on-time pay delivery – especially during disasters, e.g., hurricanes or snow storms, when transportation can be shut down – and when U.S. Postal Service first-class mail delivery is delayed.
- Instant Account Reconciliation – Instead of having to wait for outstanding checks to clear, pay cards allow for instant account reconciliation.
- Convenience – Employees are becoming more comfortable with pay cards, increasingly requesting them for cost saving convenience, which makes them an attractive recruiting tool. This is especially appealing for those who do not have bank accounts or prefer not to make frequent trips to the bank, and for those who simply want to split their direct deposits by sending a portion of their pay to their pay card for day-to-day living expenses.
Businesses from a variety of segments are jumping on the bandwagon to provide paperless pay through pay cards due to popular demand by their customers. Both payroll providers and their clients are choosing this option because of the noticeable cost savings associated with payroll processing, distribution and supply costs all while providing accurate and on time delivery of payment. It is estimated that companies save up to $3.00 per payment by using direct deposit instead of paper paychecks. If you are interested in pay cards as an option to your clients, contact Bernie Nolan at firstname.lastname@example.org.
About Bernie Nolan:
Bernie Nolan has been a Regional Sales Manager for Global Cash Card for over nine years and works with numerous companies in all industries to implement very successful payroll card programs. SaaShr / A Kronos Company has recently partnered with Global Cash Card to offer paperless pay solutions to their partner base through its Ancillary Product and Service Marketplace.