The new prepaid card will reduce management and reconciliation times, as well as significantly lowering the amount of back office administration required. The removal of cash and checks from the payroll system will also help improve monitoring and fraud control.
This prepaid card scheme will allow payroll managers to remove cash and checks from the process and transfer all wages electronically to create one payroll system. It eliminates the need for employees to have bank accounts and removes any difficulty in meeting the needs of temporary, short-term or migrant workers.
The card can be loaded with either US dollars, pounds sterling or euros. Individuals are then able to use it, like a debit card, almost anywhere in the world displaying the Visa sign. Once funded by the organization, a Visa prepaid card may be used for a predetermined timescale until the allocated funds are exhausted. They are easily adaptable as well – for use as expense payments, staff allowances or one-off payments such as relocation payments.
James Le Brocq, director of prepaid cards at Alliance & Leicester Commercial Bank, said: The introduction of a prepaid card scheme into an organization’s payroll system manages to achieve three important advantages at one stroke – simplification, cost savings for the company and a vastly improved experience for the employee or contractor.
