Employment Agencies Need To Get Rid Of Cheques And Choose Prepaid
Does your employment agency find it challenging to simultaneously coordinate payments for full-time, temporary, and underbanked workers? We know, and we’re here to help.
While cheques have been the go-to form of payment for workers for years, many companies, business owners, and employees are aware that there are better, more advanced methods of payment. Thanks to prepaid, a company can now offer improved employee benefits, save money, increase efficiency, plus offer different kinds of payments to different kinds of employees, all with a single card. The days of the dominance of the paper cheque are over.
So why should your employment agency switch to prepaid?
Issuing and processing paper cheques to employees is a costly process. By switching to prepaid payroll cards, companies can save as much as $223 per person. When a business has to constantly mail out cheques, the fees add up. With prepaid, you only need to mail a card once. There is also a substantial cost to replace lost or stolen payroll cheques. In the U.S., those numbers add up to over $50 million annually.
Represent The Underbanked:
When working with a wide variety of different employees and employee types, you will inevitably struggle with properly serving the underbanked or unbanked, i.e. people who don’t have access to traditional banks or banking resources. 28% of all Americans are now classified as unbanked or underbanked. For them, cheque-cashing can be a nightmare, since they are generally forced to pay exorbitantly high fees at payday loan or cheque-cashing centres. With a prepaid card, they can easily access their funds without having a bank account.
People Want It:
The numbers don’t lie: people are tired of cheques! Only 4.8 million employees received paper cheques in 2017, down from 13.8 million in 2010. Compare that to payroll cards, which were used by 3.1 million workers in 2010; by 2017, nearly 11 million workers were paid by payroll cards.
Businesses Need It:
Today, businesses need to offer more modern choices when it comes to how they pay their employees? 81 percent of executives believe digital transformation is a competitive opportunity. Don’t let your payroll system leave you behind.
It’s Better For The Environment:
Cheques are a huge burden on the environment. One retail company estimates its Mastercard® prepaid payroll system will reduce its carbon footprint by 500,000 tons annually. Just imagine if every company moved away from cheques.
It’s Quick And Easy To Make The Switch:
It only takes 6-8 weeks for your business to make the switch from outdated cheques to a Mastercard or Visa® prepaid payroll program.
Payment via cheque takes forever! When you add up all the time wasted by standard mail, bank deposits, and cheque clearances, many workers are forced to wait days (even weeks) for their hard-earned money. Replacing a lost or stolen cheque can take even longer. With prepaid, funds are issued instantly, and lost or stolen cards can be fixed with a single phone call.
Your Brand Matters
Ensure that your brand is on your workers’ minds by creating a fully branded experience replete with a custom card, website portal, and more.
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