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Perspective: Five Important Questions to ask EPDS providers

Electronic payroll distribution services (EPDS) can be a great program for an employer. It can also make employees’ lives easier on pay day. Getting EPDS right involves some thinking and planning, and careful execution. With the right partner, and some recommended best practices, an employer will have the greatest chance of success.

Here are some examples of important questions to ask your EPDS provider

  • How does your service comply with the laws of most states that require employers to permit employees to receive a paper paycheck if they wish?
  • Do you have a nationwide network of free check cashers, including in those states that require the employer to provide free check cashing?
  • How do you obtain our employees’ consent to participate in your program? What happens if they don’t consent? Do we have to provide them with company-issued paper checks?
  • Can we use your service to pay employees’ wages at termination in states that require those employees be paid immediately? What about employees who have not consented to being paid by your service? Can we just pay all of those employees by issuing them a paycard? If so, how does your service comply with state laws and Regulation E that require that employees be able to choose their own account?
  • How does your service comply with the laws in each state with respect to methods for employees to access their wages free of charge and to the penny?

Find more example questions: http://www.firstdata.com/en_us/insights/4376_Paycard_Best_Practices_WP.html

Rob Kirsh is a director of product management for prepaid solutions at First Data.

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