Can I get my Wages paid on to my Prepaid Credit Card Account?
Pay Salary on to Prepaid Cards
Prepaid cards are increasingly being used for payroll and the remittance of staff wages, particularly for small sole traders, or organisations that employ temporary staff. But why all the fuss?
Current Problems for the Employer
For organisations that employ temporary staff members who do not have a UK Bank account, payroll expenditure and overheads can be high. Generally, cheques need to be produced and distributed, or high amounts of cash need to handled, creating not only additional security risks, but an extra administration burden, and cost.
Pay Wages on to Prepaid Cards
This can also be a problem shared by smaller companies or sole traders, employing just 1 or 2 staff members.
By providing a Pre-paid debit card, the employer is able to load the card with the employee’s salary in a fast, cost effective, and efficient manner. Most UK prepaid card issuers accept bank transfers via BACS, thus reducing the overheads on cash or cheque processing.
For smaller organisations not able to directly contract with a prepaid card provider and offer this service, they can request that their employee sets up a prepaid card themselves. The employee can then provide their card number to the employer and wages may be paid via BACS, or at the Post Office.
Salary Benefits for the Employee
The employee is provided with a prepaid payment card, rather than having to pay high fees for cashing a cheque or carry their entire weekly wages in cash.
The card will be accepted worldwide at up to 24 million locations (depending whether a Maestro, Visa or MasterCard is selected), and provides the employee with the ability to transact on the internet.
The employee may also add an additional card to their account, and send the additional card back home. This enables a family member to use the additional card at the ATM to withdraw funds in a local currency.
See our review of Salary prepaid money transfer cards for further information.