05.21.15 |
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APIs: The Secret Behind Fluid Paycard Programs

LiquidBusinesses are consistently looking for ways to cut down on costs throughout the organization.  Today, many companies are learning that you don’t always have to cut back to reduce costs – in fact, sometimes you simply need to add one more piece to the puzzle to help everything fall into place.

Paycards are an example of a program that many companies are adding that simultaneously offer employee benefits and can help employers cut costs.  According to recent research conducted by the American Payroll Association (APA) on behalf of ADP, 74 percent of survey respondents, who work for companies that are currently using a paycard program, listed the reduction of check printing, processing and distribution costs as a benefit they’ve seen from their paycard program.

So how can adding a new component to a company’s payroll process help make things work more efficiently?

Enter application-programming interfaces, or APIs.  Many APIs are running the show behind the scenes for a variety of technology systems today, including numerous paycard programs.  An API allows different web-based software programs to interact with one another on the back-end, allowing a paycard program to communicate directly with a company’s payroll system.

An example of a paycard program API at work is a restaurant owner who offers paycards to help employees track their earned tips.  Since tipped employees are generally paid out at the end of each shift, and because many customers pay electronically these days, it can often be difficult to pay employees their full tips if there is not enough cash on hand at the restaurant.

By using paycards to pay out tips to employees that elect to use this option, businesses are then able to transfer electronic funds directly to those employees using an API.  The API allows this to happen almost instantly by taking data from the point of sale, transferring it through the payroll system and then funding the card itself.  This method is convenient for many employees because their wages and tips can be stored in one place on their paycards.  It also helps businesses more accurately assess taxes throughout the wage payments process.

A better understanding of how APIs work can help business owners look at paycards as a potential benefit for their employees and bottom line.  To learn more about how ADP is utilizing APIs and working with companies to unlock data and integrate services, click here.

Learn More About ADP SmartCompliance® Wage Payments


The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.


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