As an employer, issuing paychecks is costly and time consuming. For employees who do not have checking accounts, cashing their paychecks can be even more costly and inconvenient. Many unbanked employees must spend an hour or more and pay fees of $20 or more to get their payroll checks cashed each payday.
Now, there is a way to reduce your customers payroll check costs, reduce the time in issuing and distributing paychecks and provide a simple and convenient way for your customers unbanked employees to receive payment for their services.
ECheck Debit provides electronic payment payroll to the employee’s debit card, issued by your bank. Using a variety of options, you simply transfer funds to each employee on payday. The employees take their debit cards to any ATM machine worldwide and withdraw their money at no charge to them. The employee pays a flat monthly fee that is far less than using a check-cashing company. Employees do not have to open a checking account to be able to use these services.
Electrum provides turnkey payroll department training and support and provides multi-lingual support to employees 24 hours a day, 7 days a week.
Card Issuance
There are a variety of options for issuing a card to employees.
A supply of PIN based cards is sent to the employer. They issue the card to the employee and send Electrum the cardholder information in a file or enter it on the secure Electrum web site. The card is given immediately to the employee and it can be used once it is loaded.
A supply of PIN based cards is sent to the employer. They issue the card to the employee and send Electrum the cardholder information in a file or enter it on the secure Electrum web site. The card is given immediately to the employee and it can be used once it is loaded. Subsequently, a personalized VISA or MasterCard is mailed to the employee. The program contractor makes a choice as to whether to leave any remaining funds on the ATM Debit card or transfer to the new card. All cards in a program will be treated the same.
An employer comes onto the Electrum web site and orders a card for an employee or sends the request in a file. The card is mailed directly to the employee and can be used once it’s activated and loaded.
Loading the card
There are a variety of options for loading the card.
Electrum is sent an electronic file of the loads. An ACH file will be generated and the card loaded the next day if done before 2 PM EST.
The employer comes onto the secure Electrum web site and loads cards in a “standing order” format. The employee data is already there. Simply adjust the dollar amount if necessary and submit. An ACH file will be generated and the card loaded the next day if done before 2 PM EST.
We issue a psuedo account number to the employees. This number looks just like an ABA number and account number to the payroll department and thus fits into their normal direct deposit routine. No change takes place on the part of the employer. The card number is embedded in the psuedo account number so the bank knows which account to load when it comes to them via ACH.
Other Services
Electrum offers additional services on the card to make the user’s life more convenient.
Electrum offers a bill payment option to the cardholder. They may register, via paper application, up to five bills to be paid. Subsequently, they dial an 800 IVR line and indicate which bill and how much to pay. Electrum checks funds and if available authorizes the transaction and pays the bill within two business days. No more purchasing a money order to pay bills or traveling to the payee’s location to settle the bill. A simple phone call available 24/7 is easy, quick and convenient.
Long Distance Services – Unlike most prepaid calling cards, there are no long distance monthly service fees or connect fees. Use the card to make long distance if you need it and there’s no penalty if you don’t. One card with many functions gives the cardholders conveniences they may not have had available to them before.
Support Services
Support is available to both the employer and employee 24/7.
IVR support for account balances, transaction history, card-to-card transfer, bill payment and lost or stolen cards is available 24/7.
A secure user friendly web site provides account balances, transaction history, and card-to-card transfer.
The employer can look at processed payroll batches, use the site to manage any help desk related calls and to gain additional information
A live operator call center is available 24/7 for more complicated questions.
Electrum Corporation provides all these services today and in addition would welcome the opportunity to customize solutions for customers with unique needs.
Benefits to Employers
Eliminates the costs of issuing paper checks
Reduces he time it takes to process payroll with one consistent process
Eliminates mailing and sometimes overnight charges costs if there are remote employees
Eliminate the time and hard costs associated with replacing lost checks
Improved employee relations
Benefits to Employees
Eliminate the high fees charged by check cashing companies.
Eliminate the inconvenience of going to a check cashing company.
Leave money on the card for making purchases at any merchant accepting ATM debit cards such as grocery and convenience stores.
Leaving some money on the card is secure because the employee is not carrying a large amount of cash.
The card will provide a complete record of purchases so it’s easier to keep track of where the employee is spending his money.
If the employee is using a check cashing company, he is probably paying at least $15 - $30 per month to simply cash his paycheck. This method is cheaper and more convenient than using check cashing companies.
Money is secure because if the card is lost or stolen, simply report the card missing at an “800” number
The employee can obtain a second card and send it to a spouse or relative. He can transfer funds by an 800 number to this card and the spouse or relative can withdraw funds immediately from any ATM machine or use it to purchase goods at any merchant accepting an ATM card for purchases. This eliminates the cost of wiring money or sending money orders, and it is faster.
As an employer, issuing paychecks is costly and time consuming. For employees who do not have checking accounts, cashing their paychecks can be even more costly and inconvenient. Many unbanked employees must spend an hour or more and pay fees of $20 or more to get their payroll checks cashed each payday.