Paycards have obviously come a long way over the years. The beginning of the paycard era started almost 10 years after their introduction in the 1990s. Today, businesses have become aware of their incentives like cost savings and fraud reduction, many are reluctant to increase direct deposit participation and implement a paycard solution. Throughout those 10 years, paycard providers, like TFG Card Solutions, have made it through the negative biases and misconceptions that have plagued paycards.

Many businesses turned their backs when paycards were introduced in the 1990s. Even though paycard benefits and compliance have evolved significantly, the general perception has remained the same.

“When we run into businesses that are unfamiliar with the paycard solution we have to overcome objections that no longer apply to paycards,” said Tom Secor, President of TFG Card Solutions.

Today, paycards have revolutionized employer’s payroll and direct deposit system. Paycards have shifted the hassles of escheatment and lost/stolen checks to the paycard provider. According to Towers Watson, a global professional services company, US companies spend $200-$250 annually per employee on paper check disbursement. Unbanked employees are provided with 24/7 access to their secured funds. They are able to pay bills and make purchases online.

Paycards are the product of technology and the need for a simple and secure payment system. As paper checks become extinct paycards have taken the initiative to become the new form of payment of the future.