Sage Software recently introduced Sage Payroll PayCards. What are PayCards, you ask? Well, I wasn’t all that familiar with them either, but after further exploration, its looking like they may be the wave of the future. PayCards can be beneficial to both the employer and employee.

Did you know that more than 25% of the U.S. working population does not own a bank account? This means that some employees have to actually pay money to have their checks cashed. Also, they have to make an extra trip to some cash checking place, where the lines are sure to be long and then they leave with their entire paycheck in cash. Only to have to return later to make a bill payment or buy a money order. This is a process that wastes both their time and their money.

With this service virtually all employees are eligible, and no credit check or bank relationship is necessary. PayCards can give employees convenient and immediate access to their pay, without the hassle and expense of cashing checks. Sage Payroll paycards can easily be paid on days off, and can be used to pay monthly or recurring bills, track expenses, view account balances and transactions online, and make online purchases.

Another interesting aspect to note is that it virtually turns the Employer’s payroll process into a paperless one, according to an article in the Boston Globe called “It’s all in the card. For some employees, paper is giving way to plastic on payday,” written by Diane Lewis. Diane also speaks of the money savings that this card can bring to employers who formerly had to cut checks for employees that didn’t have bank accounts stating that “Employers consider the cards a cost-cutting measure because they reduce expenses associated with processing, printing, and delivering paper checks — or replacing one when it is lost or stolen. It costs between $1 and $2 to process a single check and about $9 to replace it, according to the American Payroll Association. By contrast, a single electronic payment through a payroll card program or direct deposit costs 20 cents.”

For employees that do not have bank accounts this service could mean time savings, money savings and increased employee satisfaction. And, employers can also save time and money. Sounds like a win-win. In Sage’s press release they announced this new service and outlined its benefits and features. To learn more read their press release at
http://www.sagesoftware.com/newsroom/news/index.cfm/fuseaction/news.detail/id/949 Also you can visit Sage Online at www.sagesoftware.com.