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How to Encourage Participation in Paycard Programs

02/27/2020 | By: Brink's Money

So, you’ve decided to implement a paycard program at your company. This is great news, right? Everyone has talked about the benefits of a paycard over a more traditional route for payroll management, and it seems like everyone should be jumping at the bit to sign up for this new and exciting perk that your business is offering.

But sign-ups have been slow and the percentage of active users is lower than expected. It’s hard to understand sometimes why employees may not take advantage of a program that you believe can positively impact their financial worlds. If you are stuck scratching your head about how best to encourage employees to consider a payroll card program, like Brink’s Money Paycard, read on for a few talking points to share with them.

Business people with a laptop sitting against white wall background

Cost-savings for employer means cost savings for employees

Most employers today recognize the value of electronic payroll distribution: after all, paper paychecks are costly to process and it costs nothing additional to handle the transactions digitally. There are also problems that can crop up that are not possible for the paycard-using employees. For example, a paper paycheck can be easily lost or even stolen, and sometimes, a paycheck could wind up at the wrong location when pay day rolls around. 

When employers switch to a paycard program, they are improving the financial efficacy of the business and providing more flexibility for every possible change in revenue. Employees can benefit from the same cost savings by removing any possibility that payment is lost or misplaced. When choosing between a paper check or a payroll card, the easiest and most secure choice is a clear one.

Easier control and visibility into financial reality

It used to be that every employee had to sit down on payday and manually track their incoming and outgoing payments--for bills, for a paycheck, for daily expenses. A checkbook was an essential tool in a person’s financial accountability toolbelt. But mistakes can be made when things are all handled manually, and in today’s world where smartphones are in everyone’s pockets, there are improved solutions that allow for less friction in tracking payments. Understanding your financial reality and impacting it, is just a click or two away on your phone or desktop. 

If an employee is hesitant to switch to a paycard, it’s worth walking them through the process so they understand how seamless it can be. So, once their payroll card is loaded with their wages from the most recent pay period, that employee can then go online, through the paycard provider's portal and see all of their account details. No matter if it’s information on their balance, transaction, or the status of a charge dispute, the details are available to the person 24/7. That’s a game changer.

Opportunity to become banked if otherwise unbanked

As common as they may seem based on tv commercials for banks, not everyone who is an employee at a job has a bank account. In some cases, they may not be eligible to open one either. The Federal Deposit Insurance Corporation (FDIC) completed a survey in 2017, to see just how many households in the United States fall under that umbrella of “unbanked” and they found that there are more than 8 million households that don't have a bank account and another 24 million households that had a bank account, but relied on other financial products outside of traditional banking. 

The benefit of using a paycard then, is they have access to many of the same features as traditional banking, without the hurdles they may have previously faced. Most payroll cards use a national credit card issuers (think Visa, MasterCard, etc.) as their backers. This way, the payroll card functions much like a debit card. You can use it to withdraw cash at an ATM, to set up automatic bill pays online.

Paycards > Paper Checks

When you partner with someone like Brink’s Money Paycard, our support doesn’t end when you introduce the new product to your employees. We are here to help you make the most of the tools we’ve created, so that everyone can feel the benefits of a technologically savvy program and a more flexible financial scenario for everyone who participates. If you’d like more information about the program or the benefits to employees, don’t hesitate to reach out, and we will be happy to work with you until all your questions are answered.