Due to advancements in technology, utilizing payroll checks is becoming an outdated form of payment. Automated payment through direct deposit saves time and money, enhances security1, 2 and can make payday easy for employers and employees. Yet, resistance to modern banking solutions like direct deposit and paycards prevent many businesses from progressing in the 21st century.
Paycard technology is growing in popularity, and as the benefits of switching to electronic payroll compound, it becomes more difficult for businesses to avoid trying out alternative payment methods such as the rapid! PayCard. Still not convinced? Here are 3 reasons why paycheck holdouts are making the switch to a more convenient, modern, and secure payment solution.
1. Streamlining payment saves money
Direct deposit significantly simplifies the payment process for employers and employees. Printing and delivering checks and wage statements by hand requires unnecessary costs and labor. Between printing costs, reissuing lost checks, and labor downtime on payday, companies are spending billions on writing checks. Having an automated payment saves employers time, money and hair they would have otherwise pulled out during the regular payday scramble to deliver checks.
Ditching paychecks saves employees money too. With funds automatically deposited into a checking or savings account, the concern of a check being lost or stolen is replaced by the assurance of having an FDIC insured card and funds are received directly onto the card rather than employees having to wait in line to cash their checks. The peace of mind knowing funds automatically appear in an account on payday is invaluable, and even more valuable is saving time for you and your employees.
2. Paycards are a modern solution for payment
One study found that more than half of Americans make purchases online, and yet employees that are issued paper checks, many of whom are without a bank account, are excluded from this modern consumer trend. Online shopping has become a staple of 21st century life, and yet many old-school payroll systems can’t keep up.
In fact, some brick-and-mortar vendors are making the move to exclusively accepting electronic payment, and thanks to emerging technology, vendors are able to ditch cash altogether. Cashless life is on the horizon, and yet employers lag behind.
Payment methods have to evolve to accommodate shifting consumer trends. Whether it’s shopping online, paying bills online, or transferring funds electronically, direct deposit ensures all money is accounted for in a bank account, and a paycard makes purchasing flexible to consumer needs.
3. Providing Security
Paycards don’t just improve convenience and payday efficiency, features such as Mastercard® Zero Liability2 and FDIC insurance1 provide extra protection against theft and fraud. Cash cannot provide the same security.
Utilizing a paycard provides several benefits when compared to payroll checks and cash- funds are centralized, and accessed electronically, making for a more secure3, streamlined financial solution. In the event of a lost card, replacement is only a phone call to the 24/7 customer support line away.
Partnering with rapid! PayCard and upgrading to a 100% electronic payroll system comes with no added cost to your company . Electronic payment is a proven money saving and security improving alternative to delivering checks.
Contact rapid! PayCard to learn more about how electronic payment and paycards will lead to greater payday efficiency, save money and improve financial security for your employees and business.
- Card funds will be FDIC insured provided the Card is registered to the name of the primary Cardholder. For additional information regarding FDIC insurance and what it means for you as a cardholder visit fdic.gov/consumers
- Mastercard: Zero Liability does not apply to Mastercard cards: (i) issued for commercial, business or agricultural purposes, except for Mastercard commercial cards used for small businesses as listed on www.Mastercardbusiness.com; or (ii) issued or sold “anonymously” (for example, a prepaid card purchased in a store), until such time as the identity of the cardholder has been registered with the financial institution that issued the card; or (iii) if a PIN is used for the unauthorized purchase
- More secure than carrying cash
The rapid! PayCard® Mastercard is issued by MetaBank®, Member FDIC, pursuant to license by Mastercard International Incorporated. Prepaid card can be used wherever Debit Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
The rapid! PayCard blog and any information contained within do not reflect the views of MetaBank or Mastercard, nor are they endorsed by MetaBank or Mastercard.