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How Can Payroll Debit Cards Lower Payroll Expenses:

10.22.2009 · Posted in Business News Article

Payroll debit cards offer effective payroll solutions. For small companies with 50-500 employees, a debit card payroll system can prove very advantageous.nnTo start a debit card payroll system, employers have to open a centralized payroll account in a bank. They also need to distribute payroll debit cards to each of their employees. On the payday, the employers can send money into the centralized account, from where all the employees can withdraw their salaries by using payroll debit cards.nnPayroll debit cards can prove advantageous for businesses having seasonal or temporary employees, who may find it difficult to create a savings account. This is because, the payroll debit cards can be used by the employees even in the absence of a savings or checking account. Employees can receive money from almost any foreign location and withdraw it using their payroll debit cards.nnA debit card payroll system can lower the payroll and payout expenses by simplifying and economizing the payment process. It also eliminates the costs associated with printing paper checks by negating the usage of paper checks. In comparison to paper checks, which cost $1 to $2 each, payroll debit cards cost just about 20-50 cents for being loaded.nnPayroll debit cards function in the same way as prepaid credit cards such as Visa and MasterCard. Hence, they can be used by the employees in the same way as prepaid cards while shopping or making payments towards their monthly bills.nnIn comparison to cash, payroll debit cards are safer and also more convenient to carry. If an employee loses his payroll debit card, he can immediately get it deactivated by contacting the payroll service provider. He will then be issued a new card. Most service providers offer round-the-clock service to their clients.nnPayroll debit cards can thus benefit not only the employers but also the employees of the small companies. Many business entities in Singapore, Germany, Brazil and Malaysia have profited from the debit card payroll system.

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