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Payroll & Taxes

Why Businesses Should Ditch Paper Paychecks for Paycards

by FrankCrum on July 1, 2021

Even in our digital age, many companies still offer paper paychecks to their employees. It’s often a decision based on longstanding habits, misperceptions about paperless payday options, or lack of awareness of alternatives.

Below you’ll find out how paperless payroll options really work and how ditching paper paychecks can benefit both your business and your employees.

Paperless Payday Myths

At FrankCrum, we handle payroll for the more than 4,000 clients we serve, and a good percentage still offer paper paychecks. The main reasons include employees not having bank accounts, concerns about privacy, or the transient, temporary, or seasonal nature of workers. The theory prevails that paper paychecks are the best—if not the only—answer to these challenges.

Fortunately, there are paperless payday options that will do the trick. Our clients can pay their employees through direct deposit into a bank account and/or paycard, and eliminate paper paychecks altogether.

The Truth About Paycards

Depositing pay into a bank account is a familiar concept, but depositing it onto a payroll card, or paycard, may not be. The paycard that we offer functions like a debit card, works wherever Visa is accepted, and can be used to obtain cash at thousands of ATMs.

When an employee chooses to be paid this way, they receive a physical card that is automatically loaded with their pay at each pay period. They can also request companion cards for family members at no additional charge.

Though a bank account isn’t required, paycards offer similar advantages like funds being secured and insured by FDIC. Plus, users can conveniently manage the card and pay bills using the card online. There are no fees for signature or debit transactions, and a PIN can be used to request cash back at a point-of-sale, making this more affordable than paper checks in many cases.

Why Businesses Should Offer Paperless Pay Options

Now that you understand the options available for a paperless payday, let’s explore why it’s a smart business strategy.

Business Continuity

Reduce the impact of storms, natural disasters, postal and transit failures, human error, and theft on your employees’ paychecks. Even if your business experiences an emergency closure, paychecks can be distributed digitally, taking the pressure off of your staff. Paperless methods create a more reliable and secure payroll process.

It’s Fast and Free

Did someone say hassle-free paychecks? Eliminate the shipping fees associated with paper paychecks. Paperless options are free for everyone involved, and the money is available sooner to your employees.

Save Some Trees

Ditching paper checks allows you to save trees, contribute to a healthier planet, and reduce the environmental cost of doing business.

Reclaim Your Time

Handling and distributing paper checks are unnecessary tasks. Choose paperless payday to save time.

Your Employees Will Appreciate It

Your employees may not realize all of the advantages they’ll experience by choosing a paperless payday option. Read on to learn how they can benefit.

Reasons Your Employees Will Love Paperless Payday

Some of your employees may be hesitant to switch to a paperless payday option until they realize the upside. Be sure to let them know what’s in it for them.

Bills are predictable. Paychecks should be too.

When employees receive paper paychecks, their pay is at the mercy of the weather, the postal service, mass transit, and human error. Choosing a paperless option eliminates problems stemming from delivery—one less thing to worry about.

Make It Harder for Criminals

Paper checks are easier to steal and fraudulently cash than the paperless kind. Plus, with a paycard or bank deposit, funds are insured by FDIC. It’s a “win” for employees and a “fail” for criminals.

Go Easier on the Environment

Choosing a paperless payday option allows individuals to reduce deforestation and pollution while lowering their carbon footprint. It’s a simple way to contribute to a better environment.

Say “Buh-Bye” to check-cashing fees

Check-cashing services charge an average of $8 to cash a paycheck. If your employees are paid weekly, they’ll spend $416 a year just to get their well-earned money. Paperless payday options help your employees keep more of what they earn.

Find Better Things to Do

There are a million things your employees WANT to do. Standing in line to cash a paycheck isn’t one of them.

If you are still offering paper paychecks, now’s the time to make a change and get your employees on board too. If you are a FrankCrum client, it’s easy to break the habit—reach out to your Payroll Coordinator for assistance or contact us here.


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FrankCrum is a professional employer organization (PEO), founded in 1981 dedicated to helping business owners boost HR capabilities and broaden convenient services and benefits to employees. The origin of FrankCrum dates back to 1981, when Frank W. Crum, Jr. and his father, Frank Crum, Sr., founded the Great American Temporary Service. With a passion for helping small business owners succeed, the company has evolved and grown over several decades.