PAYROLL CARDS

In the last decade, the payroll industry has experienced a tremendous increase in costs associated with processing checks. In an effort to save money on paper, printing and distribution costs, many employers are considering replacing traditional paychecks with pre-paid, re-loadable, debit cards. With the average cost of issuing a payroll check in the United States approximately $1.35 (not including mailing expenses), and the average cost to reissue a check approximately $12, payroll cards are a cost-effective alternative to printing and mailing payroll checks.

Program Description:
Payroll cards are a cost effective alternative to printing, cutting, and mailing paper payroll checks. The payroll card is reloaded with the value of the employee’s wages, allowing the cardholder to use the card at ATM or POS terminals.

Some recent statistics provided by the American Payroll Association validate this shift towards payroll cards:

As much as 30% of the U.S. population does not have a bank account (American Payroll Assoc.)

More than four million paychecks are lost or stolen each year (American Payroll Assoc.)

Lost paycheck replacement costs are estimated to be $48 million annually (American Payroll Assoc.)

Companies can save up to $1.25 per payment using electronic disbursement instead of checks (www.directdeposit.org)

The chance of having a problem with a check is 20 times greater than with Direct Deposit (www.directdeposit.org)

Studies show that employees may spend the equivalent of three work days each year going to the bank (www.directdeposit.org)