The debit card is probably one of the most convenient banking tools that have ever been invented. Its use in the business world is extremely under rated. Businesses can use a debit card to make major purchases without the hassle of wondering if the company will take personal checks.
Many businesses are active on the Internet, and debit cards allow for quick, easy transactions. And they can save you money! Each time a business uses a credit card, they are charged interest on the transaction; not so with debit cards. And they are limited by the amount of money in the account to which they are attached.
The debit card is an excellent way for businesses to not only know how much money they’re spending but to also control the spending. After all, you can’t spend what you don’t have. They make it easy to send money as well as receive money, particularly when you’re using a prepaid debit card.
How does a prepaid debit card work? Simple, it works exactly the same as a regular debit card, except that it is not attached to your account. It needs to be pre-loaded with a specific amount of money, which then becomes the value of the card. Some payroll departments find prepaid debit cards an easy way to send money too!
Prepaid debit cards are great payroll solutions because they not only save the time it would take to write payroll checks but it also saves the expense of wire transfers, which can get quite costly over time. Time is money in any business and any time saved is money saved as well.
Imagine a company that has 10 employees. Depending on what institution you use for the employee’s prepaid debit card, the company can save from $2 to $10 per check each pay period. For this scenario, let’s say they are paying their employees every 2 weeks (26 checks per year per employee) and are saving the lowest amount of $2 per check. At the end of the year, they’ve saved $520. By using a debit card for payroll services, the employees are able to receive money much quicker as well.
Some banks may pass that savings on to their customers, which could result in a lower charge for banking fees. Debit card and prepaid debit card solutions can be the answer to payroll expenses for your business.
The same company that has 300 employees will really benefit by having their payroll services use a prepaid debit card to send money to their employees. With the same check price as up above, the company will save $15,600 per year by using a prepaid debit card vs. writing checks and approximately $78,000 over using wire transfers to send money!
