What is a Payroll Card?
A payroll card is a card that allows you to access the money from your paycheck using a card that looks like a bank debit card. The money is held in an account, and you withdraw it or spend it by using the card. A payroll card can be more convenient than using a check casher, because you can make ATM withdrawals and use the card to buy things. Some payroll cards also are cheaper than a check casher, but others are not. You will usually have to pay a fee if you use the card at an ATM more than once per pay period. You may have to pay other fees. A payroll card is not the same as having your own bank account. The payroll card account usually is held as a single account in the name of your employer. That account holds the payroll funds for you and all of the other employees using the payroll card. Some payroll card programs establish a separate account for each employee, but others do not. Source:
The employer provides an ATM card application to the employee to be completed and the employer forwards the completed application. Once the ATM card is established, the employer can make a direct deposit to the account that is tied to the ATM card. The employee can access funds through any ATM. After 90 days; the employee is upgraded to a Visa™ Debit Card. This allows them to use the Visa Debit card at any point of sale merchant, and it also functions as a phone card. Extra cards can be ordered and sent to family members for their use. Why would I use it? Paycheck Plus™ Payroll Card works best with the ACH Direct Deposit Origination. It is for those businesses that have direct deposit of payroll and also have several employees that can not take direct deposit, as they do not have a bank account. How your Company benefits. • Streamlines your payroll function even more and saves money by eliminating paper checks. Eliminates check handling, printing, postage or storage costs. • No need to
A payroll card is a reloadable debit card. Other names for payroll cards are stored value cards, paycards, payroll debit cards, electronic paycards, or simply debit cards. Cards can be branded with card association marks. Companies use payroll cards to electronically disperse money to employees, affiliates, and distributors. Types of payments commonly placed on cards are wages, commissions, residuals, reimbursements, per diems, advances and termination pay. Payroll cards are popular for US workers.
