Through direct deposits, many companies have most of their employees in a paperless mode regarding their routine bi-weekly compensation. But, as a business owner, you’re familiar with the problem of a few holdouts. Some employees prefer paper checks and some can’t provide a bank account for accepting electronic direct deposits.
One solution gaining ground is debit cards issued by a bank working with your company. In this way, employees avoid any credit and background checks. The employee received a debit card and PIN number used to retrieve cash from the ATM.
To arrange this, your company establishes a banking relationship with a bank and either:
Creates a separate account for each employee, or
Creates a main bank account and sub-accounts for employees who need the service.
Depending on the type of debit card issued, the employees may be able to use the card to make transactions at stores accepting the common Visa or Mastercard endorsed services.
Some of the benefits to employers include:
  • Lowering payroll processing costs associated with physical check printing and mailing.
  • Offering payroll consistency that may avoid infrastructure complications like severe weather disrupting the mail service, or an office closure.

The benefits to employees include:
  • Avoiding any requirement for credit checks or bank accounts
  • A voids check cashing, bank service charge and money order fees
  • Utilizes the normal ATM systems for withdraws.
  • Allows for quick distribution of funds, avoiding lines at the bank and mail service delays.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on benefits and HR management. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.