BancorpSouth, Inc.’s (BXS - Free Report) Treasury Management unit recently introduced the BancorpSouth Payroll Card. This is an alternative to the conventional method of paying employees through checks. With the new payroll card, employers can make payments to their staff electronically.
Management at BancorpSouth believes that the payroll card is beneficial to both the employers and employees. It simplifies the payroll process, lowering the processing and check fees for the payers. On the other hand, it provides instant access to funds without making the employees wait in queues or pay fees for cashing of checks.
Through this card, the employers can also pay those staff members who have no checking accounts. These cards can also be used at ATMs and in stores as a debit card. Customers will also be able to transfer funds from the card to their bank accounts.
We believe that payroll cards are beneficial to companies as it involves a direct deposit. It shortens the processes of issuing receipts that lengthens the payment of the salary for a certain period. This results in lesser paperwork and significantly reduces the expenses.
Mainstream banks have been striving hard with the new regulations. Thus, they are looking for alternatives in an effort to improve financials. These have led to major bank launching a flurry of different types of cards – such as prepaid cards in order to improve non-interest income. The introduction of the new payroll card is one of such efforts.
BancorpSouth currently carries a Zacks Rank #3 (Hold). Other southeast banks performing better than BancorpSouth and are worth considering include BNC Bancorp , Bank of Kentucky Financial Corp. and Customers Bancorp, Inc. . All these stocks carry a Zacks Rank #1 (Strong Buy).