The importance of managing staff expenses efficiently means corporates must consider the use
of payment cards. by KAMRAN SIDDIQI, GENERAL MANAGER oF VISA IN THE MIDDLE
Increasing processing efficiency and reducing payroll costs are two priorities common among most companies, particularly in an economic climate where businesses are looking to streamline costs and operate at their most efficient. In this context, innovative solutions are all important. With this reality in mind, Visa has developed the Payroll card, a card specifically designed to provide a cost effective and flexible way to pay staff.
One of the biggest lags on the administration of employee expenses and general cash management is unnecessary bureaucracy. The Visa Payroll card is defined by its ability to bring the utility of electronic payment to situations that traditionally involve cumbersome and labour intensive processes. The card is ideal for employers looking for a flexible way to pay staff and enables all types of employees, even those without a banking relationship, to access their salary in a fast, secure and convenient manner.
Employers often find that the Payroll card streamlines their back-office payment processes and also proves to be an effective way to reward staff through financial bonuses. If a staff member has earned a bonus in addition to their regular pay, the employer can grant this to them via the Payroll card. In addition to regular salary and bonuses, the Payroll card can also manage reimbursement for business expenses
incurred by employees, termination pay and short term internship salaries.Employers can also use the Payroll card to reinforce company branding and pride.
Employees who sign up for the Payroll card enjoy the increased security and convenience it offers. Increased security is of particular importance for those who do not have a bank account, and would often, without the Payroll card, be receiving their salary in cash or cheque form. The Payroll card is beneficial for this demographic in particular, and is an effective way to bring unbanked employees, such as temporary staff, or migrant workers, into the e-commerce sphere and offer them a convenient and secure salary transfer. This has the added bonus of encouraging financial literacy among this demographic as well – unbanked employees can benefit from the security that the card offers, without risking
the pitfalls some first-time credit card users sometimes experience when they sign up for a card.
Employees also have the option to nominate a second card on their account, making it a convenient way to manage money between spouses and other family members. Money management and budgeting are also easy to control via an online account which lets the cardholder view an itemised transaction record. The process of signing up for a card is simple. employees enrol for the card directly through their
employer and their pay is automatically deposited into their individual card account. employees can then use their Payroll card as they would a debit card – to get cash, purchase items at point of sale and pay bills. The card can also be used to make online purchases and purchases at millions of locations worldwide. additional funds can be loaded on to the account through Visa Prepaid Load services.
Employers may take advantage of the simplified electronic disbursement that the card offers, and promote financial literacy within the unbanked segment of their employees. The card is an example of Visa’s continued efforts to provide targeted products to consumers and find the best possible solutions to payroll issues for employers and employees alike.