Payroll debit cards, also known as Paycards, function in same manner as prepaid cards
. A debit card payroll system can be very effective for business organization that has employee base of 50-500.
These debit cards offer easy payroll solutions for small businesses. By using debit card payroll systems, small business owners can easily send money to the central payroll account. Besides, the business owners can keep a tab on the employee's transaction process by contacting the payroll service provider.
They employees can then use their payroll debit cards issued to them by the employer to collect their salaries/wages. A strategically implemented debit card payroll system can significantly enhance the business prospects of small businesses.
Payroll debit card program make the use of paychecks obsolete and thus lowers the company's administrative costs. This feature allows the small enterprises to save significant money and improve their profit margins.
Hence, small companies across the world prefer to use debit card payroll system to other traditional payment methods. In addition, payroll debit cards can be extremely beneficial for employees. Employees can also demand monthly statement which contains list of transactions from the bank that overlook the operation of payroll account.
Employers who have these cards don't have to wait in long queues to receive their monthly salary. To receive money they have to visit any nearby ATM center of the bank that is associated with the company's debit card payroll system.
Since payroll debit cards function just like prepaid credit cards such as Visa or MasterCard, employees can use these cards for shopping. Employees can use these cards to pay for their monthly utility bills. These cards can also be used to avail security benefits and tax refunds.
These unique features of payroll debit cards make them useful for both employers as well as employees. Several small business entities in Brazil, Singapore, Malaysia and Europe have gained tremendously from using debit card payroll services.