Should On-Demand Pay Providers Vet Their Partners?

The best way to select an On-Demand Pay Provider starts and ends with credit checks.

When a company goes bankrupt, their on-demand pay vendor is left hung out to dry. Just ask the vendors of Lord & Taylor, Chuck E Cheese Entertainment, and CraftWorks Holdings.These vendors are now owed close to a million dollars from unrepaid loans for employee transfers.

Situations like this can affect the on-demand pay provider’s ability to provide adequate service to its existing partners or its ability to afford to take on any new partners in the future, which is important to consider when selecting an on-demand pay provider.

Credit Check or CHECK OUT

We’ve outlined the best ways to select an on demand pay vendor for your company, but don’t overlook ensuring that the provider has a strong credit check process in place for new employer partners. Choosing an on-demand pay provider who doesn’t vet employers that they plan to partner with can be extremely risky. It’s risky because the provider is assuming new financial risk associated with less financially stable partners, and in cases where those companies go bankrupt or are unable to repay their debts, your service from the provider may be negatively affected through their loss of funds.

Protecting our partners and their employees

Every potential DailyPay partner undergoes:

  • A risk committee
  • A credit committee
  • A credit risk evaluation
  • Ongoing monitoring of the partner’s financial health once they are officially onboarded

Not only does this process protect DailyPay from risk, it also protects our users and their paychecks. Our financial stability as a company is paramount to providing the highest quality of service possible to employees who depend on our technology for financial wellness.

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