What scares employees about prepaid cards? Halloween Edition
by ReadyFUND$ Payroll Card
Are you an employer that has considered implementing prepaid payroll cards only to have your employees run and hide from the ghouls and goblins of electronic pay? This frightening experience is more common than you think. The largest reason businesses do not implement payroll cards is the scary uncertainty it brings to their employees. Most of the fright for employees is misconception, some is misunderstanding and some is just fear of change. Let’s highlight these below and let you know what you can do to unmask these ghouls and goblins for your employees.
Misconception- Some employees have a skewered view of what payroll cards are and what they can do. Many employees don’t realize they can still get access to all of their money, and at no charge. In a niche where cash rules, employees may have to be educated to the benefits of payroll cards versus cash. For instance no check cashing fees. If it is a MasterCard or Visa Card you can pay bills online or over the phone. Shop online and anywhere the card is accepted. Get your paycheck instantly without having to drive anywhere. Get cash back. For these employees, they may not have had this feature available to them before and may confuse payroll cards with other prepaid cards on the market. A little education and real world examples will help this group of employees feel more comfortable and even excited about payroll cards.
Misunderstanding- Employees in this group may have fears and misunderstandings about how payroll cards work and impact their money. These employees may worry about losing their money little by little with fees. They may worry about being able to get their money off of their card. They may even be worried if they lose the card they lose their money. These are legitimate worries, and may have been valid with previous payroll cards. But payrolls cards have made leaps and bounds in the past few years ensuring consumer protection. Funds are FDIC ensured and if a cardholder loses their card it’s the same as someone losing their debit card, the funds are protected. Many payroll card providers have also limited the fees charged to cardholders. And recent payroll card regulations ensure payroll card providers give cardholders the opportunity to 100% access of their money at no charge. Paper checks don’t even offer that since many times they have to pay a check cashing fee that payroll cards eliminate. These card holders want to be assured that they can access their money when they want it, and that they are not going to be nickel and dimed in fees.
Fear of Change- People in general know this fear all too well. For many, the advancing fear of technological progression can be overwhelming. What’s a tweet? Why do I need a Facebook? You can do what with your phone now? This kind of fear doesn’t just happen with technology. This group of employees may feel this kind of fear as well when asked to change their spending and payday routines. Check cashing and fees may just feel easier and less overwhelming to deal with then direct deposit and debit cards. But as with all change, things just get easier as you do it. For many employers, when the choice of change is left up to the employees, there is minimal adoption. You know it’s good for your business. You know it’s good for your employees. You just have to implement it and be patient with your employees, and they will accept it. You may even have them try it for several pay periods and if they don’t like it, you can always go back to checks (although that never happens). According to the NACHA 97% of employees that use electronic pay are satisfied with it. Trust that you are making the right decision for your business and employees.
Don’t be afraid to implement an electronic pay solution for your employees. You are benefiting your employees, saving processing costs for your business and doing your part to save the planet. It may be scary for a little while, but just like some of the ghouls and goblins of Halloween, this too shall pass.