Your company might have had spotty luck with its direct-deposit program. Some employees enrolled right away, while others forgot to complete all the necessary forms. Some may prefer to cash a physical paycheck while others fall into the "unbanked" category, effectively operating outside the financial system. According to the FDIC National Survey of Unbanked and Underbanked Households, nearly one-third of American households fall under that last category, making it challenging for employers and employees to exchange funds. 

Paycards set up a clear solution to the problem: Mandating direct deposit. This allows employees with checking accounts to link their information to your payroll system, and those who are "unbanked" to enroll in a paycard program that provides them an easy way to access their income. Many unbanked Americans rely on check cashing centers to obtain the salary they've earned, which comes with hefty fees. This diminishes their spendable income considerably. Additionally, paper checks can be vulnerable to fraud if the wrong person attempts to cash or deposit them. 

Instead of depending on check cashers to access funds, paycard users enjoy the fluidity of a debit account to make purchases online, pay bills and take cash out from ATMs as needed. For employers, this reduces the time and money spent on paper checks, creating a greener and more cost-effective payment model. While meeting state regulations, your unbanked employees can enjoy these benefits. Some unbanked Americans enter their predicament due to a history of poor financial choices. To receive a paycard, no credit check is required. 

At Vantage, our paycard solutions can help your employees access funds while saving your business overhead costs on payroll. Contact us today to learn more about implementing a paycard solution in your business.