What are Payroll Cards?
Most states now handle the unemployment and the supplemental nutritional program with re-loadable debit style cards. Did you know that payroll companies also offer that as a feature for our customers? Payroll cards are a great benefit for you and your employees if used the proper way. Some companies have begun to use regular pre-paid credit cards, but that might not be the best idea.
If you have employees who don’t work near your office, if they are scattered around the area, and if they don’t have a bank account, these re-loadable debit cards can be a very good way of getting paid. From Chron, by Scott Thompson, Demand Media
“Payroll cards are subject to a number of regulations designed to protect employees, while general purpose re-loadable cards are not. Confusion between the two has led to much resistance against the use of payroll cards, so use the right kind of card to ensure that employees are not charged high fees to access their money.
How the Card Works
A payroll card works exactly like a debit card linked to a bank account with a direct deposit plan, except that no money other than payroll may be stored on the card, and no bank account is linked to the card. Every payday, the funds owed to the employee are automatically added to the card for the employee to use. The payroll card can be used to directly purchase goods and services at any business that accepts debit cards, or the employee can withdraw the money as cash from an ATM. Employees must be able to withdraw all funds without any fee being charged at least once every pay period unless they use an international ATM or an ATM outside the approved network.”
If you think that is something which could be helpful for your company and your employees, give us a call and we can chat about it!