Employers should consider several factors when they pick a payroll card provider. Of these, customer service is the most important factor and probably the one that requires the most due diligence during your vendor selection process.
I say this because all payroll cards will save time and money for the employers that use them. A payroll card program will help your company get close to or even up to 100 percent direct deposit enrollment. By using direct deposit, you will permanently reduce your company’s overhead. The American Payroll Association estimates that businesses spend more than two dollars to print each paycheck, based upon the cost of labor and processing. Every payroll card is built to use direct deposit.
On the other hand, there is no guarantee about customer service. When you sign on to a new payroll card partnership, it becomes a factor in your company’s relationship with its workers. Your staff is going to perceive the card as an extension of your company. If they think the card has problems, they will attach the blame to the company that gave them the card. Look out!
Let’s review the three questions that matter the most:
First, the business owner needs to ask how much they will pay to use the service. Does the card provider charge fees to the business?
Second, a smart employer should recognize the importance of customer service. They will want to have an easy way to reach a person inside the payroll card company. Ideally, they will have a dedicated “go-to” representative assigned to their account. That makes a difference. You will have a hard time leaving work on a Friday if there is a problem with the paychecks.
However, customer service goes beyond the communications between the employer and the card company. It is also important that your workers can find answers to their questions. If they cannot, it is likely that they will direct their inquiries to their employer. Their problems with customer service quickly become those of their employer.
Third, pay attention to how state wage and hour laws vary across the states where your company does business. Logically, any card company seeking to do business in a particular state will have a product that complies with local laws. However, being legal still creates problems if your business wants to use a card to pay workers in more than one state. For example, the state of Connecticut has unusually restrictive rules governing payroll cards. As a result, some payroll card program managers have decided to withdraw from working there.
Beyond the fact that some payroll card companies do not operate in every state, it is also true that the same card program may be programmed to work differently in different jurisdictions. The payroll card company’s staff salespeople will understand the legal requirements and will have designed cards that fit within those rules. If your payroll department has to message differently depending on where your workers are located, then it presents an additional difficulty.
Lastly – how well will the payroll card program integrate with your payroll software? You must understand the answer to this question before you sign a contract.