It’s been said that money makes the world go round. Have you stopped to think that technology makes money go round? Use of cold hard cash becomes increasingly less common as technology advances. Today we receive and spend money without ever actually seeing it; in fact, the majority of money exists electronically as 1s and 0s. With money being saved on computer hard drives, what does that mean for us?
Paying employees, or being paid as an employee, is widely done through direct deposit. Automatically transferring money from a company’s bank account to that of an employee has several benefits for both parties. For more employers, direct deposit means checks don’t have to be printed which saves both time and money. Direct deposit also allows employers to pay their employees from anywhere.
Employees also benefit from the many advantages of direct deposit. Foremost, direct deposit means earnings are available on pay day. Being paid electronically also means that employees don’t have to bother with checks. Checks are easy to lose or damage, not to mention that they have to be taken to a bank which isn’t always convenient.
While direct deposit makes it convenient to be paid, debit and prepaid cards make it easy to spend money. With debit cards being linked to bank accounts, there’s no need to carry cash. If lost or stolen, cards can be deactivated to prevent unauthorized use. Unlike physical cash, debit cards are accepted worldwide making them easy and convenient to use.
Prepaid debit cards function similarly to standard debit cards, with a few notable differences. Unlike traditional debit cards, prepaid cards have a fixed amount of money loaded onto them. The fixed amount of a prepaid card means that you can’t overdraw from a bank account. Money can be added or reloaded to prepaid cards through direct deposits, ATMs, and online transactions. One disadvantage of prepaid debit cards vs. traditional debit cards is the lack of protection. Standard debit cards are protected by federal laws against fraudulent use, but prepaid cards are not. However, with common sense and awareness, prepaid cards are still safe and convenient to use.
Whether through direct deposits or debit and prepaid cards, the way we receive and spend money has changed. Though cash is still usable and accepted, it comes with many risks not found through electronic means. Cash also lacks the many conveniences of direct deposits and prepaid debit cards.
