Paperless Payroll Strategies for the Unbanked Employee

Everywhere you turn these days you are bound to hear the term "paperless" or "going paperless". In an effort to save money and save the environment green businesses are following suit and campaigning their paperless efforts. While printing less paper has tremendous effects on the environment, it has even larger effects on businesses bottom-line.

Paperless payroll has been around for a long time in the form of direct deposit, convenient for both the employee and the employer. The employer saves money on checks and check issuing. The employee saves time, no deposit bank visit to make. It seems to be a "no-brainer", shouldn't all employees and employers be enjoying the benefits of paperless payroll? But what if some of the employees do not have a bank account, for various reasons? Traditional checks must still be drawn up for these employees. Some employers report higher unbanked employees than other employers, due largely to geographical area and type of business. Using a payroll pay card program like Money Market Fasttrak Pay Card Program can help those employers take their payroll paperless. While giving their unbanked employees access to a pay card, which acts just like a debit or ATM card.

According to First data, "Money Network is dedicated to being the leading pay card provider in the industry by enabling paperless pay for employers while providing employees with a safe, convenient and cost-effective alternative to receiving paper checks".

Many unbanked employees are forced to pay between 2-4% of their net pay in check cashing fees or are limited to paying for everything in cash. Having access to their wages instantly on a pay card would eliminate unnecessary fees and allow them to purchase items over the phone, through the mail, or online. Money Network checks are also available for bill writing, which are similar to money orders.

"I have clients that were surprised that the pay cards are instantly issued and are either STAR branded, stored- value, PIN debit cards or Visa branded, stored-value, PIN and signature debit cards", said Tony Shap of PaymentMax, an issuer of Money Network. "These pay cards can be used just like any other payment card to make purchases or withdrawal money", said Shap.

The Money Network Pay Card Program can give unbanked employees a secure direct deposit option, reducing employer costs associated with payroll. Paperless payroll is a good choice for the environment, saving trees and reducing waste.