Payroll cards are a different way employers can pay their staff on payday. They can be used when an employee doesn’t have a standard bank current account or when an employer is concerned about the security of paying in cash or to a friend or family members account or the charges that their staff will incur cashing in a cheque without a bank account.
What are Payroll Cards?
A payroll card is a prepaid card on which an employer loads an employee’s wages or salary. Payroll cards are an alternative to cash-in-hand payment, direct transfers or cheques.
They are usually debit cards linked to an online current account. They give employees all the benefits of a banking account and debit card whilst giving businesses a way to automate their wage payments. Each month, money can be automatically transferred to a Payroll card by standing order or manually sent by a straightforward bank transfer.
Why Should Businesses Offer Payroll Cards?
Businesses should offer wage/salary payments on a prepaid card whenever the only other alternatives are cash and cheque. When an employee doesn’t have a bank account, physical paper wages might seem like the easiest option, but they pose risks.
Paying by Cash
Cash-in-hand payments have glaring security risks for both you and your employee. Paying cash-in-hand means you’ll have to withdraw large sums of money each month, making you a potential theft target. Your employee will have the same problem when paid in cash, they’ll also have a more difficult time budgeting and saving.
Paying by Cheques
Cheques can mean large waiting times and massive fees for people who do not have a bank account. Those without a bank account usually rely on pawnbrokers to cash in their cheques who may charge them astronomical rates for the service. Others who can deposit them face potentially long clearing times, another obstacle for your employee.
Payroll Card Safety
Payroll cards avoid both issues, wages are paid into an account instantly and free of charge with industry-standard security. No need for you to make monthly visits to the bank or write a stack of cheques.
Using payroll cards means you’re doing your bit to fight financial exclusion, where people do not have access to even standard banking services. The online banking accounts that accompany payroll cards are a steppingstone to total financial inclusion. Suits Me accounts do not require fixed UK addresses or credit checks, meaning anyone in genuine need can get access to banking.
Suits Me Partnership
Becoming a Suits Me partner is free, without any hidden fees. If you become a partner you can create a current account for your employees in seconds and their card will be sent to their registered address 3-5 days later.
You’ll get access to our employer portal where you can bulk upload the details of your employees and get an account number and sort code back for each in moments, saving you time, money and effort.
We provide our account holders with an e-money current account and a contactless Mastercard® debit card with a secure online banking facility and free mobile banking app to manage their finances. Most importantly, we give our account holders financial freedom.