Thank you for those who took part in my recent survey of – Pros and cons of Payroll Card. Whether or not you agree with it but some say- paychecks and direct deposit are so yesterday, PAYROLL CARD IS GOING TO BE THE WAY.
WHAT’S PAYROLL CARDS?
The name itself is pretty self explanatory. Employers put wages onto a reloadable card or also known as prepaid debit card to pay their employees. According to the Alite Group, a financial research and consulting firm, there are nearly 4.5 million US workers got their wages on payroll card last year. Those numbers is predicted to grow more than double over the next four year. Many large companies particularly those with a number of hourly workers have begun to practice payroll debit cards rather than the traditional payment form. There is a growing trend of employers paying wages to employees through payroll cards in order to skip the hassle and to save significant amount of cost.
THE PROS?
For individuals who do not have basic saving account, payroll cards can play an important role because they provide some of the same benefits and protections that traditional banking relationships offer, while bringing them into the formal financial system. Payroll card is in favourable simply because it’s QUICK and RELIABLE delivery of funds for both employer and employee. Payroll cards can be used like debit cards to make purchases, receive cash back from purchases, withdraw money from ATM and even pay bills. Payroll cards also offer consumers important security protections since the cards are issued by a financial institution and are subjected to strict consumer protection laws. Besides, the card offers flexibility where employees can load salaries from multiple employers onto the card and even take the card with them when they switch jobs.
THE CONS?
Users may want to concern about the hidden fees that may acquire such as receiving statements, overdrafts, replacing lost cards, transferring money to another account or making withdrawal at ATMs. As a standard electronic card, there is always the risk that the card might be stolen or lost.
Nevertheless, before you decide to opt out- remember that many of the terms of payroll cards can be negotiated between the vendor and the employer. Also, many of the fees that employees may incur could be avoided if employees are properly informed.
For explore the option further, kindly contact us at info@kbocards.com or check out more info at http://kbocards.com/
PAYMUNDO 