Find out the advantages of payroll cards and why now might be the perfect time to make the switch from old-fashioned, clunky payroll processes.
Still writing checks on payday?
Payroll cards are a valuable alternative to traditional paper-heavy payroll processes, cutting the extra time, costs, and headaches often associated with cutting checks.
Payroll cards for employees deliver wage access through a physical card, much like a debit card (with digital cards also an option). They also make life easier for employees who don’t have bank accounts.
This might be your first time thinking about switching to prepaid card solutions for payroll. Or you may have considered it before but weren’t sure if the time was right.
In this article, we’re going to look at five signs that indicate it’s time to switch. Recognize any of them?
1) Your Payroll Costs Are Mounting
The costs of paper check processing are high. Research suggests it can cost around $2 to cut a check, compared to about $0.35 for direct deposits.
Add onto that the extra costs involved, such as delivery fees and staff’s time spent on processing and reconciling, and the number could be even larger. The Bank of America estimates the total cost of a business check to be anywhere between $4 and $20.
Switching to a digital process like payroll cards removes many of the costs associated with check payments, including the time your accounts teams will save.
2) You Have Unsatisfied Employees
Employee satisfaction is crucial to a successful business, particularly when the current working landscape is so precarious. With many employees feeling the pinch of the economic situation, getting their pay to them on time has a huge impact on satisfaction..
Today’s employees demand digital payroll solutions. If paychecks are mailed out, employees are forced to wait on delivery, which can be incredibly slow. Even if checks are delivered in a timely manner, they then still have to bank them and wait for them to clear. For unbanked and underbanked employees, paychecks are even a greater hassle, as they’re faced with the time and fees associated with alternative financial services like check cashing.
Payroll cards offer immediate delivery of funds, each and every pay cycle.
3) You’re Short on Time and Resources
When you’re having to physically print paper checks, you have to factor in everything from loading the printer to mailing checks out, never mind facing issues like printer malfunctions and toner shortages.
In today’s economic climate, businesses should focus on the most profitable growth strategies and tactics. Managing payroll via paper checks takes a lot of time and effort, whereas prepaid card solutions integrate easily into existing systems and take much less time to manage.
4) You’ve Experienced Paper Check Fraud
You only have to experience payroll fraud once to know how frustrating it is. For example, the risk of paycheck diversion fraud, where an employee takes and cashes an absent employee’s check.
Prepaid payroll cards drastically minimize the risk of this and other fraudulent employee activity. Any absent employee has their own card, so there’s no physical check to divert.
If a check is lost or stolen, it must be reissued. If this happens with a prepaid card, it can quickly be canceled and reissued.
The risk of other types of payroll fraud, like pay rate alteration or advance retention, is lowered too, as digital prepaid card solutions offer tighter controls.
5) You’re Struggling With Digital Connectivity
In 2022, companies with non-digital legacy systems will disappear. The need for digital transformation has accelerated rapidly over the last few years, so there’s no excuse for businesses to still be dragging their feet.
An incredible 96% of business leaders are focusing on digital business transformation this year, and payroll cards are a fast and effective way to digitally transform payroll. They save time and money, streamline audits, and deliver an overall more efficient way of paying employees.
Offer On-Demand Pay with dash™Payroll
Whatever system you currently have in place, our industry-leading payroll cards will integrate easily into it. Your business will benefit from a more efficient and secure process, and employees will appreciate fast and easy wage payments.
Contact one of our team of payroll specialists to find out more.