January 14, 2019
Whether you are a Fortune 500 company or a small business, payroll distribution can be costly and complex. Improving your payroll system by making payments electronically could save your business money in processing costs, while making it simpler for employees to receive their earnings.
The considerable advantages of adopting an electronic payroll distribution program include:
- Streamlining payroll operations and helping to prevent fraud by cutting fewer paychecks to employees.
- Cost control with the potential to save between $2.87 and $3.15 per paper check by using direct deposit.1
- Simple to manage with end-to-end program management services from your Paycard provider including implementation, client service and support, training, and marketing.
- Smart inventory management can help you manage the instant-issue cards you have on hand and enables you to set up automatic card shipments.
- Convenient enrollment allows employees to have a seamless on-boarding experience.
- Online account access, providing access to fund employee accounts or pull robust reports, all at your fingertips.
Not surprisingly, the popularity of payroll cards is on the rise. A study by Aite Group2 revealed that $42 billion was loaded onto 5.9 million active Paycards in 2017. The use of Paycards is expected to grow to $60 billion, and 8.4 million Paycards are projected to be active by 2022.
Going electronic with your payroll process may save time and money, while helping to prevent fraud.
1. Potential savings estimates are from NACHA: The Electronic Payments Association, “Direct Deposit for Business”
https://electronicpayments.nacha.org/direct-deposit/businesses/direct-deposit-businesses NACHA’s calculation is based on industry averages for over thirty variables and is for directional guidance only. Actual results may vary. NACHA and Netspend do not in any way warrant the savings results obtained using this calculation.
2. Aite Group: U.S. Payroll Card Market Overview: The State of Pay