Dr-Fix-It! Notebook Archive:
Payroll Plastic ...
Everybody likes to get paid but nobody likes dealing with paychecks. Writing and distributing paychecks can be a real headache. Printing checks, signing checks, stuffing checks in envelopes is a never-ending chore. If the company has employees on the road or at different locations, someone must deliver those paychecks. Then, there are the special arrangements necessary to pay the employee who is sick, on vacation, or away from the office.
Now, there is an innovative payroll system that enables companies to pay employees via an ATM-style card which is loaded electronically through the company's current payroll process. Not only does the new ATM payroll card end the chore of printing, signing, stuffing and delivering, it also significantly lowers payroll costs. It is estimated that loading an employee's payroll card saves up to 75% of the cost of writing and delivering a paycheck. ATM payroll cards are funded just like checking accounts with direct deposit. The ready-to-issue, reloadable payroll cards allow companies to easily pay their employees - new hires and temporary employees - via direct deposit right from the first day of their employment. Pay can be distributed to the card on payday even if the employee is sick, on vacation, or away from the office. No one ever has to deliver another pay check.
For employees, the ATM payroll card offers the savings, convenience, and peace of mind of having funds directly deposited into a personal, secure card account that is accessible 24 hours a day, seven days per week.
Employees without bank accounts benefit from the safety, savings and convenience of not having to cash checks. These employees have instant access to cash on the morning of pay day. Employees no longer need to pick up a paper check, sneak away at lunch, drive to a check-cashing store, and wait in line to cash the check.
On the surface, It is a WIN - WIN situation. Employers save time and money and employees save, too. But, critics charge that some ATM payroll cards only shift payroll costs from company to employee. Consumers Reports warns that some ATM payroll cards deduct service charges for every ordinary transaction such as withdrawing money or making a purchase. Typically, these fees range from only one to two dollars per transaction but, over time, lots of little deductions add up to big money. Consumers Reports estimates a payroll cardholder could pay $164 or more per year in service charges.
That is why it is important to pick the right ATM payroll card.
Cash Card Solutions offers the PAYROLL PASSPORT pay card which allows the employer to tailor the fee structure. The fees can be assumed totally or in part by the employer to best suit the needs of the company as well as the employees.
Employers also enjoy lower payroll operating costs because there are no hidden charges to implement or use the PAYROLL PASSPORT pay card. Furthermore, there is no technology to deploy. The PAYROLL PASSPORT is designed to integrate seamlessly into existing payroll operations.
A key feature to employers and employees alike is the 'instant issue' capability of the PAYROLL PASSPORT pay card. That means the PAYROLL PASSPORT pay card can be issued to a new employee right on the spot. Other Cards with embossed names might take up to 3 weeks to receive and issue (and many have to be mailed to the individual directly - causing serious payroll control problems for the employers and serious cash-flow problems for new employees !).
Since the PAYROLL PASSPORT pay card is backed by First Bank, cash is available at any time, any day of the year at over one million ATM machines worldwide. Or, employees can use the card to shop at over 5.4 million retailers in the U.S.-and even get cash back.
Now that's a WIN - WIN situation!
Check out: Cash Card Solutions
Who needs checks?