Paycards offer numerous features that benefit both employers and employees. Payroll disbursed via a funded paycard is an alternative to traditional payroll distribution. Because paycards serve as an electronic payment method that allow employers to directly deposit employees’ wages onto a reloadable card, this service eliminates the need for a paper check or bank account.
Paycards provide employees with convenient access to their payroll by making disbursed funds immediately accessible. Employees are able to access their funds by withdrawing cash from an ATM, make point of sale purchases in stores or online, pay bills, and more. Paycards can be particularly beneficial for employees who do not have a traditional bank account while still offering a secure way to be paid. With enhanced security features, paycards are PIN-protected and can be replaced if lost or stolen, which provides greater security compared to carrying cash. Additionally, paycards have fraud protection features that help safeguard employees’ funds.
Paycards also offer an additional layer of employee service than a traditional pay check. With online and app services to help with budgeting, expense management, access to transaction history and the ability to track spending, employees who use paycards have greater access to financial tools and resources.
Offering paycards as an employee benefit is cost effective for employers. With reduced costs associated with printing and distributing paper checks and minimizing administrative work related to lost or stolen checks and stop payment requests, employers who offer paycards see improved efficiency as well as employee satisfaction and retention. Paycards also help employers maintain accurate records of wage payments, which can be useful for labor regulations and audits.
With SDP’s paycard solution, there is:
- No cost to the employer.
- No cost to cardholders to shop online, pay bills online, and Mastercard transactions.
- Free ATM network (Allpoint)
- Free mobile app with budgeting tools, ATM locator, bill pay, transaction history, suspend card features, plus other great resources.
- Approximately two to four weeks to set up.
It’s easy to get started and our payroll professionals assist our clients every step of the way. To get started or learn more about SDP’s paycard solution, simply contact us today.
For more information about Southland Data Processing, call us today at 909.946.2032. Or, click here and Let’s Talk!
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*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.