Need Feedback on Prepaid Payroll Cards

Hi Brittany, Did you pursue that P Card opportunity? -

Brittany,

I would say that direct deposit is ideal from my experience, but you have those who may want to "conceal" income from spouses or who may just prefer prepaid payroll cards.

One instance where prepaid payroll cards work well is for those who do not have a bank acount, which may be the case if you are paying people located outside of the US.

Also, I believe that prepaid payroll cards may be more common among certain retail companies. From my experience, which is in the manufacturing industry, the economics of direct deposit always won out.

Brittany:

Payroll is interesting. I believe we can all agree that Direct Deposit is Best Practice whenever it can be applied and is always my first choice. Yet in 30 years running cash for comapnies such as Holiday Inns, Best Products, Fidelity Investments, and EDS Corp as well as 4 years as a Treasury consultant, I hav learned that Direct Deposit is not always the solution for that 13% of empoloyees that are "unbanked". That do not havwe a bank account. With these employees you have 3 choices: 1) subsidize a bank account at some expense; 2) issue employees checks; or 3) implement a Payroll Card Program. I have put 5 such programs in to place in my career and can vouch that they work. Employees get paid in an effective (electronic), inexpensive manner (costs less than checks and only twice as much as Direct Deposit), and function with as much control as Direct Deposit.If you pay by check because employees do not have bank accounts you should look into these programs. First determine why the checks.

Best wishes for all success..............

David L. O'Brien