Celebrating Payroll Cards This National Payroll Week
September 05, 2017
This week is National Payroll Week, which celebrates people who earn wages, payroll professionals, and all the ways employees can choose to be paid.
While paper checks are on the decline and more businesses rely on electronic payments, more and more employees are realizing the benefits of payroll cards in particular. In fact, by 2022, it is estimated more 8 million people will use payroll cards to receive their wages—an increase from 5.9 million.
Both workers and employers can save time, money, and hassle by using payroll cards.
For employees, payroll cards offer benefits they may not otherwise have access to, such as:
- Getting Immediate Access to Wages Earned: There are nearly 67 million unbanked and underbanked consumers, but payroll cards allow workers to skip the trip to a check casher and have immediate access to their wages. Cardholders can also use ATMs to easily get cash when they need it
- Saving money: Managing paychecks without a bank account can be costly. Check cashing services charge fees that usually range between one to three percent of the check. Payroll cards eliminate those fees for cardholders.
- Managing funds: Many prepaid products, including payroll cards, have built-in features that help cardholders budget and track spending.
- Online bill pay and shopping: Payroll cards make it possible for cardholders to shop and pay bills online. This saves workers money and time because they no longer need to buy money orders.
- Protecting wages. Payroll cards have Regulation E protection and FDIC insurance to ensure funds are safe if your card is lost, stolen, or compromised.
Employers too can benefit from payroll cards, which help:
- Cut payroll processing costs. Businesses spend $26 to 54 billion each year just issuing and depositing checks. Payroll cards save businesses up to 65% in administrative costs by simplifying the payroll process, reducing the time to manage payroll, decreasing paperwork, and more.
- Reduce check fraud. When writing a paper check, there is a chance of falling victim to check fraud. Depositing funds directly onto a card eliminates lost and stolen checks.
- Improving Worker Morale: When workers save time and money, they can become more efficient; for instance, they don’t need to leave work early to make sure that a check gets cashed or a bill gets paid. As a result, they have more time for themselves because they know their funds are available and safe with the card.
To learn more about payroll cards, check out our infographic here.