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Need Feedback on Prepaid Payroll Cards

Brittany Peirano's Profile

Hi everyone! I am new to this forum and I am hoping that someone can provide me with some feedback regarding prepaid payroll cards. Today a company contacted me to offer me a prepaid payroll card for my employees instead of issuing them direct deposit or paper checks. Although I have heard of these cards, I am not very familiar with them or the benefits that come from using these cards for payroll. Does anyone have experience with using these cards? If so, how do you/your employees like them? Are they saving you time and money? How do they benefit your company? Any feedback would be greatly appreciated, and thank you in advance.

Answers

Kirk Conole
Title: Partner
Company: DCI Solutions
(Partner, DCI Solutions) |

Hi Brittany, Did you pursue that P Card opportunity? -

Scott Gunn
Title: CFO
Company: In-Transition
(CFO, In-Transition) |

Brittany,

I would say that direct deposit is ideal from my experience, but you have those who may want to "conceal" income from spouses or who may just prefer prepaid payroll cards.

One instance where prepaid payroll cards work well is for those who do not have a bank acount, which may be the case if you are paying people located outside of the US.

Also, I believe that prepaid payroll cards may be more common among certain retail companies. From my experience, which is in the manufacturing industry, the economics of direct deposit always won out.

David OBrien
Title: Treasury Consultant
Company: EE Treasury
(Treasury Consultant, EE Treasury) |

Brittany:

Payroll is interesting. I believe we can all agree that Direct Deposit is Best Practice whenever it can be applied and is always my first choice. Yet in 30 years running cash for comapnies such as Holiday Inns, Best Products, Fidelity Investments, and EDS Corp as well as 4 years as a Treasury consultant, I hav learned that Direct Deposit is not always the solution for that 13% of empoloyees that are "unbanked". That do not havwe a bank account. With these employees you have 3 choices: 1) subsidize a bank account at some expense; 2) issue employees checks; or 3) implement a Payroll Card Program. I have put 5 such programs in to place in my career and can vouch that they work. Employees get paid in an effective (electronic), inexpensive manner (costs less than checks and only twice as much as Direct Deposit), and function with as much control as Direct Deposit.If you pay by check because employees do not have bank accounts you should look into these programs. First determine why the checks.

Best wishes for all success..............

David L. O'Brien

Adam Rust
Title: Director
Company: WiseWage
(Director, WiseWage) |

I have a question. I'm trying to do research on pain points with using payroll cards.
Generally, I'm an advocate for the use of these cards if employers have workers who are unbanked. I think direct deposit is a win-win.
However, I want to understand both sides.

If you have used them - what were the drawbacks?

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