The Debit Card And Payroll Relationship – A Match Made In Heaven
June 17, 2009 by Rolf Peerson
Filed under Credit Card
More and more companies are discovering the benefits to using a debit card payroll system when it comes to their payment plan. A debit card offers payroll services that will save you more than just money on your annually employment expenses. Essentially, a debit card payroll services account allows you to direct deposit your employees pay check into their bank accounts. They can retrieve the money with their debit card or prepaid credit card.
Not convinced that a debit card payroll solutions service is right for your company? Below weve listed three benefits to using the direct debit that may change your mind:
- You are helping the environment. Weve all seen the facts and figures about the state of the environment and we also all know that we should be doing something about it. By switching to a debit card payroll system, you are actually doing something about it. The debit card payroll solutions can limit the amount of paper as the process is all electronic. You can choose to give out pay slips in paper or electronically which most technological-savvy employees prefer anyway.
Imagine what this means for a larger company, with, say 300 employees. Instead of spending hours signing each check before sending it out to your employees, you can use a direct debit service where the money is automatically transferred. In check cashing fees alone, you can stand to save more than $500 monthly or $6,000 annually, according to the APA.
Furthermore, you are also saving money on paying your accountants overtime every second Thursday to ensure the checks are created as well as countless trees by switching to a paperless system.
Your employees will also be thrilled with this new system. They can receive money directly to their account which limits the need to visit the bank to deposit their check. They can simply withdrawal what they need and keep the rest in their savings account.
There are no processing check fees and no annoying bank lineups every Friday evening.
Now, perhaps you have a larger company with 300 plus employees and are considering the switch to debit card transactions. It will take you an entire day to write out 300 checks biweekly, not to mention it will end up hurting your wrist. By switching to a debit card payroll system, according to the APA and American Bankers, you may be able to cut back over $6,200 annually on check cutting costs, which equates to $520 monthly.
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