Aside from the initial start-up costs associated with rolling out a paycard program, employers will immediately eliminate the reoccurring costs associated with buying traditional paper paycheck stock with security features. Employers will also enjoy cost savings from decreased toner cartridge usage for their paycheck printers as well as significant decreases in postage and overnight delivery charges for sending paychecks to employees at multiple work sites.
Other advantages of paycard deployment and use for employers include:
- reducing or eliminating bank service fees and account reconciliation costs, as well as stop payment fees for lost/stolen paychecks;
- initiating final wage payments to terminated workers via a paycard in lieu of having to physically provide a final paper paycheck to them in person or via overnight delivery;
- eliminating escheatment liability for the employer in many cases, as it will be passed on to the financial institution that actually holds the employee's funds;
- decreasing the total number of paper paychecks having to be produced and sent out by the organization to pay employees their wages, employers can significantly minimize their exposure to paycheck fraud.