DEBIT CARD WORK?

Payroll debit cards are prepaid cards that are used specifically for the payment of wages. Employees with or without bank accounts qualify for payroll debit cards, and employees without bank accounts do not have to pay any additional fees to access funds. In addition, companies save money on paper, printer, and computer costs when using payroll cards instead of paper paychecks. Any size or type of company can use payroll debit cards to pay wages, incentive payments or bonuses.

Payroll debit cards are similar to traditional debit cards that are linked to bank accounts. The cards differ in that wages are the only money that may be stored on a payroll debit card. Payroll cards are also not linked to any bank account, and every payday the wages owed to the employee is added to the card and immediately available to the employee.

Employees are able to use the payroll debit card for online purchases, in-store purchases and can withdraw cash from an ATM. With a payroll card, employees are able to withdraw all the available funds once every pay period without having to pay any additional fees. Added benefits include the flexibility, security, and convenience these cards offer.

It is important to note that a payroll debit card is not a general purpose loadable card, and that there are specific regulations governing payroll debit cards. Employees are protected against unauthorized charges when using payroll debit cards, and payroll card issuers are required to disclose their dispute resolution process and the how their fees are structured. Furthermore, payroll card issuers have to comply with a 21-day notice period when changing the terms of the agreement.

Prepaid cards are used in some states for the payment of unemployment or other benefits. The use of payroll debit cards in the private sector is increasing, and companies are moving away from the use of costly and time-consuming paper paychecks. Employees benefit from wages that are immediately available every pay period, the added security and the convenience of payroll debit cards.