Prepaid/Prepay card accounts are not very secure accounts, such as https://prepaysolutions.com/. There are many reasons why employees have these types of accounts and it’s usually because they are unable to get a standard bank account or choose not to use a standard bank account. This could be due to credit scoring, bankruptcy or because of their residential status, or because they prefer this type of payment system.
When you appoint an employee you would usually ask them for their bank details at the time of sending them their offer letter, so it’s best to double check what the account type is at that point.
Do you have to pay an employee by their prepaid card account?
No. If your contract of employment states that you are paying them at a certain time during the month by BACS, you can continue with that process. You can of course pay them by cash, but ensure that you get them to sign a receipt, but you would not want them to do it long term.
Bank accounts can easily be set up online and sometimes you just need a passport and a proof of address and sometimes details about their right to work in the UK.
If you have problems around appointing employees or queries over someone’s status, please get in touch.
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