The electronic card industry may be receiving a boost thanks to the innovative practices of some employers. Businesses are now begriming to pay their employees through pre-paid debit cards, as opposed to paychecks, aiding the payment processing industry by contributing to the ubiquity of electronic funds transfers.
The West Virginia Treasurer’s Office and Auditor’s Office are currently engaged in a joint effort to offer state workers the ability to obtain their payment through pre-paid debit cards known as “West Virginia Pay Cards,” according to a report from the West Virginia Metro News. It indicates that the state expects to save approximately $500,000 yearly by switching away from paper-based modes of payment, illustrating the profit potential that comes with optimizing recurring billing software capabilities.
“It is a pre-paid debit card that the employees can elect to receive,” said Assistant state Treasurer Misty Price, according to the news source, before going on to explain that the switch is not mandatory. “Their pay will be directly loaded on it the day of pay day. The option will be either direct deposit or you’ll select the pay card.”
The state and its officials are not the first employer to engage in such a practice. Earlier this month, the Washington Post detailed a lawsuit brought against a McDonald’s franchise for paying their employees with a debit card. The franchisees defended their decision to the news source, stating outright that the cards are no less than the equivalent cash or checks they would have received otherwise.
State workers worried that fees will be cutting into their paycheck can set their concerns aside, Price told the news source. Additionally, there will be “a lot of options” available to workers who want to withdraw money from their pay cards without incurring any transaction charges.Back To Blog