When it comes to workers’ comp payments, injured workers can face a slew of challenges.
Unbanked and underbanked workers encounter serious hurdles, especially if they’re working in a location far from home. If they don’t have access to their home bank (due to injury, distance, or otherwise), it becomes difficult to cash or deposit a check. Cost is also a concern as places that offer check cashing services charge substantial fees, which significantly decrease the net payment amount received.
Aside from the inconvenience and high fees, checks are vulnerable to theft and fraud due to the availability of sensitive banking information like account and routing numbers, and contact information. Cash payments for workers’ comp is not an option.
With these issues in mind, injured workers need another way to receive their payments that grants greater, more convenient access to funds; increased security; quicker payments; and fewer fees.
Here are 6 reasons why injured workers should accept a reloadable debit card:
Immediate Access to Funds
Once the preloaded card is registered by the worker, the funds are ready to use. The payer can set up scheduled payments for automatic delivery, alleviating the time and hassle of having to wait on the check to come in the mail, and then cashing or depositing it.
All Money, No Fees
There are no check cashing fees to access funds through a debit card.
Companies who issue preloaded cards partner with major credit companies like MasterCard® or another credit card issuer. This means the cards can be used wherever MasterCard (or other) is accepted, such as at grocery stores, gas stations, and other retailers.
With a reloadable debit card, no sensitive banking information is exchanged or delivered. Plus, users set up a personalized PIN code during card registration in order to use the card at ATMs or as a debit card at retailers. That virtually eliminates the chances for fraud. In addition, if the card is reported lost or stolen, many credit card providers protect cards from loss or theft of funds.
Pay Bills, Shop Online, and More
Like a regular credit or debit card, reloadable debit cards have a 16-digit number, expiration date, and security code. Wherever a traditional card may be used, such as shopping online, paying bills, etc., the reloadable card can be used there, as well.
Need Cash? No Problem
Reloadable debit cards can be used at participating ATMs to withdraw cash, though ATM fees may apply as with a standard banking debit card.
For injured workers, convenience, security, and greater access to funds are just a few reasons to accept a reloadable debit card for workers’ comp payments. Of course, there are benefits for payers, as well, including convenience, lower costs, and more.