A pay card for employees can be one of the most financially beneficial business tools available to a business. For one, it helps to keep track of expenses and transactions - which is essential in running a successful business. It's also relatively easy for employees to use. Some companies also find that issuing these cards speeds up checks and documents, which can be helpful when processing payments at the end of the month, to get more knowledgeable about this topic it is wise you take a look here.
However, there are some drawbacks to issuing these cards, as well. One major drawback is the high interest rates associated with the cards. As a result, they are often a bad idea for small businesses and independent contractors. Many cards also don't allow you to issue more than one pay card for an employee and some also restrict how much cash can be withdrawn from the ATM. Also, these cards aren't allowed in many international countries.
Another issue with pay cards for employees is fraud. Because they are generally issued by check or credit card companies, it's easy for someone with access to your business's accounting records to misuse the card. This can include stealing payroll, merchandise, or employee benefits such as holiday gifts. If this happens, the employee might not get their pay for the period of time they tacked-off the item, leaving them unpaid. Some pay cards also offer discounts to employees who enroll in the company's services, which can make it even more attractive to fraudsters.
There are some options available to help combat fraud and misuse. Some cards, such as debit cards and some online merchant accounts, require employees to login to an account to use the card. These types of cards are usually restricted to online purchases, though, which makes them less attractive to thieves. Some cards, such as gas cards and airline miles, deduct payments automatically from bank accounts, eliminating the need for an employee to manually input information into their computer. Visit this website: https://www.payactiv.com/paycard-employees/ to learn how you can get your employees payroll cards.
One way many companies have used to combat fraud is to charge a small annual fee to all cardholders. Fees for these types of cards are usually much lower than the average cardholder would pay for most major credit cards, due to the higher risk of fraud when using them for business purchases. The downside to these cards is that they do not provide any rewards or perks for spending. They are just there to prevent employee theft. The percentage of fraud that occurs in business is probably low, but it is always a good idea to ensure your company is doing everything possible to prevent cardholder information from being stolen. A pay card for employees is one way to combat fraud.
When choosing a card for an employee, you should take several factors into consideration. First, make sure you choose a card with features that your employee will find useful. Next, consider whether you will be able to reimburse employees for the cost of these cards quickly. Finally, check your employees' credit history and try to steer them away from paying high interest rates. If you need more information on which cards are best for your company, contact a pay card specialist. They can give you the information you need to determine which card will give you the best return for your investment.
For more information associated with the article above, see this post: https://en.wikipedia.org/wiki/Payroll.