The DailyPay Blog

5 Takeaways from National Payroll Week 2018: Daily Payroll, Direct Deposit, Appreciating Payroll Managers

As we enter the fourth quarter of our fiscal business year, patterns for 2019 are starting to develop. How can we make next year more productive than this one?

 

Several trends for payroll process improvements and predictions were highlighted during National Payroll Week 2018.

 

Here is our recap of some of the most notable trends.

Continue reading “5 Takeaways from National Payroll Week 2018: Daily Payroll, Direct Deposit, Appreciating Payroll Managers”

Press Release: DailyPay Announces Partnership with Gold Mountain Communications

Gold Mountain Communications aims to support the financial needs of its staff by offering the DailyPay solution

 

NEW YORK (September 14, 2018) — DailyPay, a pioneer in providing employees instant access to earned income, today announced a partnership with Gold Mountain Communications, a market leader in the contact center industry. Through this partnership, Gold Mountain Communications will begin offering DailyPay to all of its employees across the United States. This benefit gives Gold Mountain Communications employees the flexibility to make secure, instant transfers of earned but unpaid income any day of the year.

Continue reading “Press Release: DailyPay Announces Partnership with Gold Mountain Communications”

The Future of HR: Technology That Transforms Employee Experience

Currently, there are 6.6 million job openings and 6.6 million unemployed people in the United States. In other words, there is one open job per unemployed person in today’s tight labor market. During the 2007-2009 recession, there were more than six unemployed workers per one open job. As the employment tables have turned, it’s now employers, not employees that must compete to be noticed.

 

Continue reading “The Future of HR: Technology That Transforms Employee Experience”

DailyPay Offers Early Access To Earnings At No Charge To Those Impacted By Hurricane Florence

DailyPay exists to serve our partners and their employees by enabling financial security through instant access to earned income. We will be waiving all fees and offer free access to earned income for employees of our partners headquartered in the Carolinas as they recover from Hurricane Florence.
Continue reading “DailyPay Offers Early Access To Earnings At No Charge To Those Impacted By Hurricane Florence”

Turnover And Retention Rates for QSR Businesses

In our previous article, we discussed employee retention rate by industry and looked at which industries have the best and worst employee retention rates. In this article, we take a closer look at the restaurant industry, which has a notoriously high turnover rate and low retention rate.

 

Fast food restaurants, along with fast-casual restaurants, make up a segment of the restaurant industry known as quick service restaurants (QSR). Though the QSR industry is fast-growing, staffing issues abound.

 

What does turnover and recruiting look like in the QSR industry?

Continue reading “Turnover And Retention Rates for QSR Businesses”

An Instant Pay Technology Myth – Payroll Will Never Sign Off On This

In July 2018, DailyPay co-founder Rob Law shared 5 Myths About Instant Pay Technology with HR.com.

In that article Rob debunks many common misconceptions about instant payments, like, “instant payment is just like a payday loan” (it’s not), “My employees are fine with weekly pay” (they’re not), or “Access to instant payments encourages poor spending habits” (they don’t).

Continue reading “An Instant Pay Technology Myth – Payroll Will Never Sign Off On This”

What we learned at CCW Executive Exchange: How to turn an ASA cycle from vicious to virtuous

DailyPay Recap from CCW Executive Exchange 2018At the 2018 Contact Center Week (CCW) Executive Exchange, the topic of average speed of answer (ASA) seemed to be top of mind for a lot of attendees. It was certainly a topic that came up during the roundtable discussion we moderated, which included:

  • Weslee Berke, Director of Customer Service for BOXED;
  • Michelle Hendrix, Director of Customer Engagement, Cafepress;
  • Rhonda Hughes, Director, Commercial Services Business Planning at Biogen;
  • Michael Tremblay, Director, Customer Relations for Air Canada; and
  • Donald Hicks, Vice President of User Services at Twitter.

Continue reading “What we learned at CCW Executive Exchange: How to turn an ASA cycle from vicious to virtuous”

What is an Employee Net Promoter Score (eNPS) and How Does it Impact your Bottom Line?

Many businesses deploy a net promoter score (NPS) survey which is an index that measures the willingness of customers to recommend a company’s products or services to others. There is value in learning how others perceive your products and their loyalty to the brand, and companies often make fundamental changes based on patterns in the survey results.

Continue reading “What is an Employee Net Promoter Score (eNPS) and How Does it Impact your Bottom Line?”

With new technology comes new fraud for the QSR industry

With the rise of new and agile technology in the mobile industry, the potential for and evidence of fraud has also gone up.

There are two types of fraud that specifically have hit the quick service restaurant (QSR) vertical – customer fraud and employee fraud. In this article, we highlight two.

Loyalty apps and mobile ordering options are more than a popular trend. The new form of commerce, dubbed m-commerce, is becoming an integral part of many businesses’ growth strategy — 33% of merchants believe the mobile channel will represent at least half of their total revenue by 2020.

Mobile sales are especially crucial to the QSR vertical. Many customers who frequent QSRs are already accustomed to both apps-based payments (digital wallets) and mobile loyalty programs, which means QSRs without the capability may quickly fall behind the competition.

With every new innovation comes growing pains. We are quickly finding that increased functionality with mobile payment and loyalty program options creates new risks for fraud.

In fact, about 75% of merchants from the food and beverage industry reported that mobile fraud attempts increased in 2017. Unfortunately, 54% of the same merchants said detecting fraud is one of their most significant challenges when it comes to mobile.

Let’s dive into some of the specific examples of mobile fraud.

qsr checkout b&wTypes of Fraud QSRs face

Fraud has evolved from simple schemes like card testing or “friendly” fraud into more complex attacks that monetize every aspect of the digital customer journey.

Account takeover (ATO)

Purchasing someone’s identity can cost as little as $1 on the Dark Web. Fraudsters can easily buy hundreds of account credentials and continue testing them until they gain access to someone’s existing account. Once a fraudster gains access to an account, they are able to take full advantage of its information, including using saved payment methods or loyalty points to make purchases.

ATOs are particularly damaging if customers are duplicating passwords across platforms. If this is the case, fraudsters can make purchases on the breached account, and any other account with similar information like bank accounts or digital wallets.

Friendly fraud

Many QSRs are making ordering functionality via third-party apps or systems a cornerstone of their mobile strategy. Many customers can now place an order ahead of time using voice-activated systems like Apple HomePods or Google’s Alexa. Dunkin Donuts is giving customers the ability to order ahead using the Waze app.

While these order ahead features make consumers’ lives more convenient, they’re also susceptible to ‘friendly-fraud’, i.e. someone other than the customer—a child who can yell ‘Alexa!’ for example—that can accidentally place an order. Many businesses will authorize a refund, which can create losses for the company.

Chargebacks are also classified as “friendly fraud.” In this case, consumers may illegitimately click the “I didn’t order the product” or “the product never arrived” options of an app to receive money back for a product that they did in fact accept. Unfortunately, for user-experience, these options are a necessity for customers who need to use these options legitimately, but as a merchant chargebacks cost upwards of $40 billion annually.

Hackers

Another type of mobile-based fraud occurs when hackers exploit software vulnerabilities (like an error in the code or a flaw in response requests) to gain access to sensitive information stored within apps.

Mobile apps are also at risk of social engineering attacks. Developers with a hacking background can install malware within their applications so that each time an app is used or downloaded, a user’s account information is accessible.

Both of these hacks are difficult for consumers to catch, and businesses may not know how to determine if this is affecting their mobile apps.

mobile paymentEmployee Paycard Fraud

The QSR industry is also vulnerable to employee fraud through a platform meant to make life easier – instant payment programs utilizing pay card technology.

Instant payment programs that utilize pay cards have become a hub for employee fraud in the QSR space. These services that seek to make lives easier ironically add a layer of fraud and frustration for companies that use them.

When instant payment programs utilize pay card technology, each pay card is associated with a specific account identifier that is meant to correspond with the employee that uses that pay card. As such, instant payment platforms that use pay cards enable employees to request money be sent directly to their pay card. Platforms utilizing this technology check whether or not an employee associated with a pay card account identifier has already requested payment, and if they have not, will withdraw the requested amount from the associated account.

Employees can easily defraud this system. Because pay cards operate in connection with account identifiers (and not individual employees themselves), the mechanism to send payments is not directly tied to the individuals requesting payment. As the disbursement of requested payments is tied to a pay card account identifier, fraudsters are essentially able to flit from account identifier to account identifier, taking various requested amounts out each time.

This specifically impacts the employer – the payouts to employees come straight from the company’s coffers. Companies are directly hit by these inefficiencies in pay card technology (and the inability for providers who utilize this technology to do anything about it).

The way pay card technology works necessitates certain safeguards against fraudulent activity – these safeguards don’t exist and don’t seem to be coming anytime soon.

Companies Must Stay Vigilant

The reality is 35% of merchants do not track mobile fraud even though 60% of overall fraud originates from a mobile device. But, mobile payments aren’t going away anytime soon.

As the demand for mobile payment functionality quickly grows, businesses must organize and strengthen their technical support, so their mobile features function efficiently. Companies must stay vigilant to ensure their mobile strategies are secure.

If not executed properly, QSRs — and all industries alike —can face massive monetary loss in addition to customer dissatisfaction and brand damage.

Learn why DailyPay is the most secure and flexible daily payment benefit for QSR employees


More Articles by DailyPay CEO and co-founder, Jason Lee

There are key market forces at play that are changing payroll in 2018. Market Forces Driving Payroll in 2018

 

Today, we are in a once-in-a-generation perfect storm in the payroll industry. Unrelenting market forces—unrelated to payroll—are conspiring to create major change in our industry. The result of this perfect storm is that employees want to control the timing of their pay. And employers will have to meet this demand. READ MORE…

 

DailyPay - why the daily benefit favors transparency and simplicity as a means for reducing employee turnover. Why We Do Things The Way We Do

 

DailyPay’s mission is to give people their first steps toward financial security, and in doing so, to enable companies to reimagine their workforce.  To do that, we have to meet people where they are. Our demographic is asking for a small but important step to give them the feeling of control they lost when they started to get behind on their bills. READ MORE…