Ecount News

Employee News: A New Form of Paycheck

Survey shows salespeople prefer receiving their commissions on prepaid cards

SEPTEMBER 27, 2004 - When it comes to receiving commission and incentive payments, sales professionals with checking accounts prefer prepaid cards to direct deposit, paper checks and cash, according to a new survey by Ecount, a Conshohocken, Pennsylvania-based company that specializes in payment distribution technology.

The survey, which randomly sampled sales professionals who received commissions or other incentive payments in the form of prepaid cards, revealed that 90 percent of respondents approved of their employer's prepaid card program. "The number-one reason cited by sales professionals as to why they prefer prepaid cards is the speed in delivery of payment. Prepaid cards are loaded instantly, as opposed to checks, which can take a couple of weeks to clear," says Matt Gillin, CEO of Ecount.

It is common practice for many companies to use prepaid cards to pay their employees without bank accounts, but the survey reveals that sales professionals with bank accounts also are receptive to the payment method. "The survey is important because there is a lot of dialogue surrounding prepaid cards for the segment of the population without bank accounts. But we also found that employees with bank accounts are interested in utilizing these types of cards. Sales professionals like prepaid cards because they have greater control of their funds," Gillin says.

Survey respondents were also asked about how they used their prepaid cards. Seventy-two percent said that they use it for day-to-day purchases, while 58 percent indicated that they use prepaid cards for luxury purchases. Other uses were more conservative, with 33 percent using it to pay bills, and 21 percent using their prepaid cards for long-term savings.

- Jeanie Casison-Tansiri