Over the years, the method to provide salaries to employees has shifted from cash to other methods, such as direct deposits, cheques, and even payroll cards. While direct deposits and cheques are understandable methods, what people do not properly comprehend are payroll cards.
There are many employees who question what pay cards are and why they are used by employers as a form of payment. Use this guide to learn the basics of payroll cards and why employers use them.
Overview of Payroll Cards
An employer gives an employee this kind of debit card called a payroll card. The payroll account of the employee links these cards. It lets staff members obtain their pay without having to cash a real check or have a standard bank account.
Every paycheck period, the money is electronically added to the card; workers can either buy with it or withdraw cash from ATMs. Most employee payroll cards enable you to easily monitor and control expenses.
What are the benefits of a payroll card for employees?
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Simple access to pay
Pay cards provide a simple method for employees to get their salary since they are very similar to a debit card. They may make purchases in any approved location and can also be used for online bill payments.
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More effective financial management
Employees may simply monitor their expenses and create alerts to get notifications on deposits, withdrawals, and purchases. This enables workers to remain ahead of their own finances and make wiser financial choices.
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Enhanced Security
Compared with cash payments, payroll cards provide better security and fraud prevention. Should the card be lost or stolen, it can be quickly replaced, and money can be secured with a PIN or other security measures, such as briefly freezing it so payments are not made through it or permanently blocking it.
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