Electronic Funds Transfer (EFT) Versus a Payroll Card

An employer sometimes organizes with a financial organization or bank to pay its staff with a payroll debit card. The employee’s salary is credited directly to the payroll card instead of paid by check or directly deposited into an employee’s bank account. In this way payroll is electronically credited to the card. Most payroll debit cards come with an online account management system where a record of all transactions pertaining to the card is kept.

To avoid the hassle about handling payroll card transactions by hand, most employers have opted to let their payroll company to do it for them. In turn, the payroll company can be a major source of support when it comes to paying taxes and other expenses. The bank will deposit the money into your bank account on your behalf. Depending on the terms of agreement, you may also have to make monthly deposits.

There are a few things you should look out for when choosing a payroll card service provider. You should look for one that charges a fee for each transaction. It should be able to provide a reasonable and simple way to set up the account, complete transactions and report any deductions or other activity. It should also allow you to easily replaced or update the card.

With electronic funds transfer, you can easily make adjustments to your paychecks and it takes less time and paper. In other words, there is less risk of human error resulting in non-payment of wages due to errors during calculations. The most common types of payroll cards used by employers are debit cards or credit cards. A debit card is linked to your bank account. When you visit your bank, withdrawal the money and put it in your account. It is debited from your account when you use the card at a participating merchant. Visit this website at http://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-and-maps/business-financing for more info about finance.

A credit card is linked to an employer’s bank account. When you visit your employer’s bank, simply withdraw the money and put it in your account. It is debited from your account when you use the card at a participating merchant. A payroll card system is often used to make payroll deposits and to deduct amounts from the employee’s bank accounts.

Both debit cards and credit cards have advantages over payroll cards. If you have a debit card, you are protected from fraud and theft. An unauthorized entry into your account will not result in a chargeback to your employer. Another benefit of using debit cards is that payroll transactions are reported on time to the employer who will use the data to calculate the wages and salaries. Using both debit and credit cards will give you more control over your finances and allow you to manage your wages and expenses more accurately than if you did not use a payroll card system. Be sure to click here for more info!

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