Pay cards offer an alternative way to receive wages without the need for paper checks or direct deposits.
Also known as payroll cards or employee debit cards, there are several instances where these cards may come in handy. Here are some examples:
Learn the basics of pay cards in this guide — from how they work to their potential benefits and drawbacks.
Among the many different types of cards available, a pay card functions as a payment card for employees to use their wages. Once an employer loads an employee’s wages directly on the card, the individual can use the card to make purchases both in person and online and withdraw cash from ATMs.
Keep in mind that there may be potential fees associated with ATM withdrawals or card usage. Availability of pay cards may vary depending on employers.
Some employers may give employees different options to receive their wages, such as direct deposit or pay card.
With a pay card, wages are loaded on a prepaid card, accessible for immediate use for online or in-person purchases. Direct deposit electronically transfers earnings into a bank or financial account, normally without fees. These earnings are then able to be transferred to other accounts or used with cards linked to the account.
Both options have their own pros and cons for employees, so each individual should evaluate what works best for themselves in terms of accessibility and convenience. Learn more about how direct deposit works.
There are several potential advantages and disadvantages to using a payroll card. Here are some examples:
Employers may offer payroll cards to their employees as an alternative to traditional payment methods like checks or direct deposit. Employees can choose to receive their wages through a payroll card when given the option by their employer. This may involve filling out a form or making a selection through an online portal.
Not sure if an employer offers payroll cards? Employees can typically inquire with their company's human resources or payroll department to get more information about the availability of pay cards and the process to receive one.
Learn about managing money with PayPal.