What is a Payroll Card?
A payroll card is a “stored value debit card”, which is “reloaded” every pay day or at other times through an ACH direct deposit transaction. It is not a credit card, and you may not spend or withdraw more than the amount available on the card. It does not extend credit to individuals, it works like a debit card. It does not require a credit check for enrollment, which means that ALL state employees may use one.
A payroll card is a type of stored value debit card. Stored value means that money is “stored” on the debit card. In reality, the money is stored at the bank, and is simply accessed via the payroll card. Payroll cards are the fastest growing and most preferred method of receiving payments. Payroll cards are increasing popular for US workers. In addition, international payroll cards are being embraced by workers worldwide. For years, employers seeking to reduce paper and automate accounting functions have encouraged workers to accept payment via ACH direct deposit. Therefore, most employers are already knowledgeable aboutdirect deposit into employees’ bank accounts. A payroll card works in a similar manner. With a payroll debit card, the ACH direct deposit is placed on the payroll card rather than into a bank account. For employers, the procedure is the same, whether paying workers via direct deposit to a bank account or to a payroll card.
Payroll Cards are re-loadable prepaid stored value cards which are provided to employees for the administration of payroll, commissions and other forms of compensation. Employers can easily direct deposit wages onto the card for immediate availability to employees. Once the wages have been deposited to the card, the employee s can use the funds for payments at any MasterCard point of sale location and for cash withdrawals from ATM’s worldwide. How Payroll Cards Work The target employees include the un-banked, seasonal, commissioned, expatriates and those seeking an alternative to traditional banking. There are literally hundreds of millions of potential users whom in the absence of a payroll card program are subject to high cost cheque cashing services, money transfer services and who commonly are exposed to the risks of carrying cash. Payroll Cards are provided to employers who in turn market the benefits to their employees, highlighting th is safer, less expensive option for un- or u
Payroll cards are financial cards that make it possible to access wages and other earnings issued to the cardholder by an employer. The use of a payroll card service makes it possible to eliminate the need for a direct deposit into a checking account as well as the necessity to manually deposit a paycheck into a bank account. With a payroll card, the employee can withdraw money from any automatic teller machine, or use the card in the same manner as any debit card. Employees find that a payroll card approach carries several advantages. First, most programs make wages and salary available on the same day the employer issues the payments. That means there is no need to wait until the next business day to withdraw funds, as is often the case with a direct deposit to a bank account. This quick access to employer-issued compensation also means that employees do not have to rush to the bank in order to deposit a check before a particular time in the afternoon in order to have the funds poste
