Reducing payroll costs and hassles with paycheck alternatives

Paying employees by check is expensive for both employees and companies. Employees who do not have bank accounts incur more than $500 each year, on average, to cash checks and pay bills by money order and other payment methods.¹ The average annual cost to companies to pay an employee by check is $255 versus $31 for direct deposit to a bank account or prepaid debit card.² In addition, a company’s payroll, finance and human resources teams spend a significant amount of time handling “exception” processing employees paid by check.

CFS Card paycheck solution

With CFS Card Prepaid MasterCard® cards, companies can deposit employee pay directly to a card in the same way they directly deposit funds to a designated bank account. Funds deposited to a CFS Card are accessible by employees quickly and easily on payday. There is no need for them to wait in long lines to cash a paycheck, or pay expensive check cashing fees (3% for payroll checks and 10-12% for personal checks on average). Plus, CFS Card provides employees with additional valuable benefits:

• No need to carry cash that may be lost or stolen
• Access to cash 24-hours a day at ATMs and participating retailers
• Purchases can be made everywhere MasterCard debit cards are accepted
• Low fees and no minimum balances
• Secure online account management and bill payment
• Many other advantages

CFS Card employer benefits

The CFS Card program from Consumer Financial Solutions (CFS) is available at no cost to employers. The program provides companies with electronic payroll disbursement for employees who don’t use direct deposit. By making the CFS Card available to employees, companies will reduce payroll processing costs and provide employers and employees with significant advantages. And, companies can implement the CFS Card program with little or no staff involvement: Consumer Financial Solutions can handle all enrollment, implementation, training, education, reporting and update services.

Companies with employees that use the CFS Card also realize the following benefits:

• Decreased payroll processing expenses at no cost to employers
• Increased productivity by eliminating replacement, fraud and other issues created by payments with checks or cash
• Improved financial controls with a fully electronic payroll process
• Reduced lead times to process payroll by eliminating manual payment methods
• Payment of one-time commission, bonus or other payments to employees can be paid with a CFS Card
• Positively impact the environment by eliminating paper checks

For more information about how CFS Card benefits employers and employees, click here to download the Employee Paycheck Alternative overview.