How Your Company Can Reach Your Goal of 100% Direct Deposit

For companies and businesses with employees, direct deposit is an easy way to save your company time and money, while making your employees happy. Direct deposit is an electronic payment made directly to the checking or savings account of your employees, retirees, or shareholders. No matter what size your company, direct deposit offers some really useful benefits.

Using direct deposit your company will enjoy time and dollar savings. Your account reconciliation process becomes easier and your company will have a single dollar amount for the total Direct Deposit transaction. Compare this to hundreds or even thousands of individual check amounts to reconcile. Even if you're only writing 20 payroll checks a week this means over 1,000 transactions to reconcile every year and that amount of work takes time and cost labor dollars.

Using direct deposit eliminates manual labor and mailing mistakes or wrong and incorrect addressing errors or slip ups by the mail delivery. Because, direct deposits don't get lost or stolen like printed checks, the potential for errors is reduced. The data is only entered once and then the system saves the information and payday becomes a seamless and accurate process for paying every employee on time at the same.

Direct deposit is an incentive that attracts employees. Because the benefits of direct deposit are so evident, most employers aim to achieve 100% direct deposit in their company so all employees get paid through the same efficient method, but there are special cases.

If some of your employees are without a bank account, it is highly unlikely that they will be enthused about your 100% direct deposit campaign. So, how can you provide them with a viable and attractive solution, so they will be eager to participate in the company direct deposit system? The answer is to provide them with a prepaid, MasterCard or Visa debit card.

These Pre-paid, Bank issued cards are FDIC insured and carry all of the same benefits as Every other Mastercard or Visa debit card but, they have one unique advantage. They will offer accounts to employees reported to Chexsystems, some 80% (and growing Daily) of banks will no longer do.

For the employee who can't open a bank account and is preventing you from attaining 100% direct deposit payroll, a prepaid debit card can be the final link ending the manual nightmare of hand issuing paychecks. Plus, the card is a big advantage to the employee as well.

Employees who don't have or, can't get a bank account are forced to cash their check at check cashing stores. These stores take 2% to 10% of your employees paycheck every week. That's a big bite! And, the employee is forced to drive all over town, just to pay utility bills because; they can't drop a check in the mail or use a debit card to pay their bills online or by phone like everybody else.

Estimates show the average employee earning $500 a week loses over $108.25 a month ($1,299.00 a year) just cashing their check at check cashing companies. A prepaid debit card issued to them would make any employer seem like a hero in their eyes, saving them time and money not to mention bringing them all the privileges a bank account can offer.

It's hard to imagine how much an employee can struggle when they can't get cash at ATMs, and they're paying 2%-10% of their earnings to cash their check. Employees in this situation are forced to pay all their bills with money orders which cost fifty-cents or more each. By the time they buy the money order and the 37 cent stamp they've added almost a dollar to every bill they pay.

Prepaid debit cards are a great solution for the employee while helping your company transition smoothly to a 100% direct deposit payroll system. In the process saving your company labor dollars and helping you add to your bottom line by recovering hours spent accounting for thousands even millions of pay checks every year.

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