to Employee Credit Cards
Some companies employ people who, for whatever reason,
either are unable to set up personal bank accounts or choose not to do so. In
these cases, they must take their paychecks to a check-cashing service, which
will charge them a high fee to convert the check into cash. Not only is it
expensive, but the check-cashing service can have a long approval process. Also,
employees will be carrying large amounts of cash just after cashing their
checks, which increases their risk of theft. They also run the risk of losing
their paychecks prior to cashing them. Thus, the lack of a bank account poses
serious problems for a company's employees.
A good solution to this problem is to set up a Visa debit
card, called the Visa Paycard, for any employees requesting one, and then shift
payroll funds directly into the card. This allows employees to take any amount
of cash they need from an ATM, rather than the entire amount at one time from a check-cashing service. The card can
also be used as a credit card, so employees have little need to make purchases
with cash. Further, the fee to convert to cash at an ATM is much lower than the
fee charged by a check-cashing service. There is also less risk of theft through
the card, since it is protected by a personal identification number (PIN).
Employees will also receive a monthly statement showing their account activity,
which they can use to get a better idea of their spending habits.