An employer usually arranges for a bank or other such financial organization to debit its employees' paychecks with a payroll card. The employee's pay is then loaded directly on to the payroll card instead of directly paid via paper check or deposited in the employee's bank account. To prevent fraud, the payroll card has a hologram that looks like a valid bank card and is impossible to copy. Any photocopies of the pay card for employees are processed as though they were the original, and the criminal can only view a photocopy of the card and not the entire thing.
These days, nearly all employers use bank issued payroll cards to deposit employees' paychecks without anyone even knowing it. However, because the use of payroll cards has risen over the years, so have the fraudulent incidents. You can protect yourself against fraud by implementing these three techniques: don't rely solely on banks to deposit your paychecks; shred your checks immediately after they are drawn; and don't get your statements from a place that won't allow you to see them. With these techniques, you will be able to protect yourself from dishonest employees who may try to steal your money.
There are many things an employer should know about payroll card Pros and cons. One of the pros is that using a payroll debit card is less time consuming for both the employer and employee. Because the employee simply swipes a special bar code at the machine to signify that he or she wants additional payment, the entire transaction takes place in just seconds. This streamlined process allows both sides to focus on the job at hand - getting paid! Click here to learn more about payroll cards.
Another pro is that because payroll cards are a debit service, it does not require the use of an ATM. You do not need to go to an actual bank to withdraw cash when the company does not have access to funds in its coffers. In fact, most employers offer payroll cards as part of its employee benefits package. It is far easier and less expensive than carrying around a large amount of cash.
Employers also have the option of choosing a paper payroll card over an electronic one. Some companies have found that their employees have become accustomed to the convenience of debit and therefore prefer to use the paper format. The alternative is to implement an electronic payment method. Employees are more likely to use this method if it is convenient. It also makes them feel that their privacy has been protected since their payment information is not stored on a computer.
While there are many advantages of payroll cards, there are also some cons as well. Some employers believe that payroll cards are not a very good idea. However, if you carefully review the benefits, you will find that this electronic payment option is a great way to stay on top of your expenses. Not only is it a great way to avoid payroll fees but also for employees to budget their own money. No matter which type of employer you work for, direct deposit fees should be a thing of the past. Check out this related post to get more enlightened on the topic: https://en.wikipedia.org/wiki/Pay_card.