First, employers paid their workers in printed checks. Then came direct deposit. Now businesses can offer their employees paycards.
A paycard is a prepaid payroll card that acts like a debit card in lieu of traditional pay methods. An employer loads an employee's paycheck every pay period on to the same card. Because of paycards' novelty, not many employers know all the ways an employee can use them. Consider highlighting these ideas when presenting the option of paycards to employees;
Because paycards are essentially debit cards, workers can use them to set up reoccurring payments like cable, gym, or other bills. This is especially helpful for employees who do not have a bank account, because a paycard doesn't need to be tied to one.
Another benefit and use for unbanked employees? Using a paycard for ATM withdrawals. Without a bank account, it's impossible to withdraw cash but anyone with a paycard can do so.
Saving For Large Purchases
The physical paycard is reusable. Each pay period means another paycheck added to the paycard, so employees are automatically accruing more money every week or bi-week (should they be able to save). Pre-planning how much to spend and when beforehand can help employees use their paycards for big buys.
Making Charitable Donations
Donating to non-profits and charities is a noble cause. However, when using a credit card, not all of a donation goes straight to the charity – some is taken for processing fees. With a verified paycard, there are no processing fees because a paycard is treated like cash. Employees can manage all their transactions with a paycard through an online portal, similar to a bank's, so they can stay on top of their finances;
Depending on what paycard service an employer uses, their employees may have access to an interest-bearing savings account that grows as that employee uses his or her card. The money earned can easily go toward year-end holiday shopping. And because paycards are widely accepted in commercial stores, there should be no issue for employees to hit the mall during November and December;
Many companies have a wellness program or something similar that incentivize employees to engage in the company. For some of those businesses, that includes giving out prizes for certain things. Usually when it comes to a monetary prize, employees receive gift cards – but that can be limiting. With paycards, the prize amount can be loaded directly onto an employee's card, and he or she can use it anywhere.
As paycards continue to grow as a viable replacement for direct deposit and paper checks, it's important to know of their many uses. If you relate paycards to debit cards and cash, there might be no end to the possibilities of paycards.