Have you ever wondered why anyone would willingly choose to receive a paper check in lieu of direct deposit? The truth is that many simply cannot qualify for a traditional bank account. Their reasons for being unbanked vary (setup and maintenance fees, language barriers, credit issues, etc.), but the end result is the same; employees who can least afford paying fees, pay the most.
We can all agree that direct deposit is a very good thing, but a recent FDIC study showed that over 25% of the U.S. workforce is un-banked; many simply cannot qualify for a bank account. Unless you provide a viable pay card alternative, those employees are left with one option; cashing their paycheck at an exorbitant fee.
On average, your paper check employees are spending upwards of $600 annually to access and use their hard earned pay. Every payday, unbanked employees are left with the costly, time-consuming dilemma of how to convert their paper check into cash. Most stand in line at predatory check cashing stores, where they are ultimately forced to pay a hefty percentage of their net pay, simply to access their funds. And the headaches and fees don’t stop there! To pay rent, utilities, auto loans, cell phone bills, etc., employees must purchase money orders… yet another fee.
A company sponsored pay card program, so that EVERY employee can participate in direct deposit! With the right pay card vendor, those same employees have instant (and free) access to their money on payday. Paying bills, making purchases, accessing cash, and sharing funds with family members has never been easier.