Payroll; Wages & Salary payment solutions - made via Prepaid credit cards
The movement of workers throughout the world has increased year on year, this has resulted in employees moving to countries where they do not have any credit history or any local bank account. Many local employees also do not have bank accounts due to previous bad credit history. The result is that many turn to local cheque cashing services who can charge astronomical fees for cashing wage/salary cheques, on a weekly/monthly basis. This means employer’s payroll costs increase as they have to spend an increasing amount of time & effort processing individual cheques for those employees who have no bank account, instead of sending all payments via bank wire transfers.
For large corporate & local government employers a Co branded prepaid credit card endorsed by visa or mastercard is the solution. Wages/Salaries can be paid directly to the cardholders account each week/month by the employer, using BACS (in the UK) or other payment systems, if payment is coming/made from other countries. This scenario can be set up in most countries, and the local currency can applied as the default currency on the card account. Card holders can then have access to the 1 million plus cash machines worldwide to withdraw cash, or use their card at retail shops worldwide, or online, or where they see the visa/mastercard sign, just like credit card holders do. Pre-paid debit card card holders can only spend the amount they have deposited on their card, and therefore can’t overdraw on their account. There are considerable savings for large employers and those who have to make regular payments to large numbers of individuals. No credit checks are required for individuals to be allocated a prepaid debit card, but they should have some form of ID.
