Organizations are realizing the multitude of reciprocal benefits derived from offering payroll cards.
Organizations can realize a multitude of benefits derived from offering payroll cards to employees. Today's payroll card programs are rapidly becoming a key component of the payroll and benefits management ecosystem. Payroll cards have helped provide employers and employees with many benefits of receiving electronic pay. The integration of innovative online and mobile applications has enhanced payroll card capabilities to function as budgeting tools and money management systems. Workers enjoy the growing list of benefits and features all designed to conform to their lifestyles with flexibility, transparency and convenience. Employers that wish to accommodate the needs of an ever-diversifying workforce will find it prudent to consider the benefits of implementing a payroll card program as more of the workforce begins to expect to have a payroll card as a pay option.
The Prepaid Card Revolution
Prepaid card adoption and usage has reached mainstream status with nearly a quarter of U.S. consumers owning general-purpose reloadable (GPR) prepaid cards. According to the Federal Reserve, GPR payments grew by 230 percent per year since 2012 compared to 7.1 percent for debit cards, 5.3 percent for ACH transfers and 8 percent growth for credit cards. This has been a key result of payroll cards, which allows employees, even those who cannot qualify for traditional bank accounts, to enjoy the security and convenience of an account that allows them to shop and pay bills with a Visa® or Mastercard® branded prepaid card.
Business Wire reports that research firm Technavio anticipates the global payroll card market to expand at a 12-percent compound annual growth rate reaching $165.7 billion by 2021, fueled by the flourishing adoption of digital and paperless payment options by employers.
The Reciprocal Benefits of Payroll Card Programs
Payroll card programs can benefit both the employer and employees. Employers can help reduce payroll expenses with the reduction of paper checks along with the various fees, including processing, postage, delivery and the fees associated with processing lost or stolen checks.
Employees' benefit from immediate access to full wages, FDIC-insured deposit protection (up to allowable limits), VISA or MasterCard Zero Liablity Policies that protect against unauthorized transactions, often providing account balance and transaction tracking, email and text alerts, 24/7 customer support, no monthly maintenance fees, improved transparency and card customization options. Unbanked workers also save time and money by cutting out trips to expensive check-cashing stores. Payroll cards are prepaid and most, if not all, don't allow for debt accumulation or overdraft fees because you can only spend what is on the card.
The ALINE Card by ADP®
As one of the leaders in human capital management and payroll processing services, ADP offers the ALINE Card, which provides the convenience of surcharge free cash withdrawals from a network of almost 70,000 Allpoint, MoneyPass, PNC Bank ATMs and any VISA or MasterCard bank (Please refer to the Fee Schedule for number of surcharge-free transactions and applicable fees). Cardholders can even receive cash back on the ALINE Card with PIN Code purchases for qualified purchases at participating merchants that accept VISA or MasterCard prepaid cards. In addition to the standard features, the ALINE card was designed to leverage the ADP ecosystem through myADP.com and mobile app platforms to access and manage their accountfor both employers and employees.
Leveraging the ADP Ecosystem
Augmenting human capital management services with a payroll card program opens the doorway to the whole suite of functions and resources for both employers and employees through a single access portal.
When clients take the full suite of ADP products, employers can access all these services through myADP and the ADP mobile app. If a client has all these services, they will have multiple ADP platforms to manage all these services as they do not live on one platform.
Employees are empowered with enhanced access to additional resources including detailed pay and Form W-2 statements, retirement accounts, benefits enrollment and detailed FSA tracking tools. Users are able to make elections, changes and adjustments seamlessly via web or mobile app.
Galvanizing the Employer Brand
As competition heats up in the ever-tightening jobs market, prudent employers should strive to provide the most flexible payroll solutions to meet the needs and preferences of a diversified workforce. The tangible benefits of payroll cards for employees are evident, however, it's the cumulative effect of intangibles including technological efficacy, brand image, management styles, work environment and treatment of employees that often prove to be the tipping point when competing for and retaining talent.
Integrating payroll card programs helps bolster the collective effort to galvanize the employer brand, reflecting an agile organization on the forefront of industry trends with a commitment to procuring innovations that enrich the lives of its workforce.
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The ALINE Card by ADP is issued by MB Financial Bank, N.A., Member FDIC, pursuant to licenses from Visa U.S.A. Inc. and Mastercard International, Inc. The ALINE Card by ADP is also issued by Central National Bank, Enid, Oklahoma, Member FDIC, pursuant to a license from Visa U.S.A. Inc. ADP is a registered ISO of MB Financial Bank, N.A. and Central National Bank, Enid, Oklahoma. The ADP logo, ADP, ADP SmartCompliance, ADP A more human resource, and ALINE Card by ADP are registered trademarks of ADP, LLC. All other marks are the property of their respective owners. Copyright © 2017 ADP, LLC. All rights reserved.
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