If some of your employees lack checking accounts, they might prefer to be paid with payroll cards. Payroll cards function like pre-loaded debit cards; at the end of each pay period, employers transfer an employee’s wage or salary directly to the card so employees can access funds immediately. And like debit cards, payroll cards can be used to withdraw funds from ATMs, shop, receive cash back, or pay bills automatically.
Payroll cards for employees have obvious perks. For employers, dispensing them is cheaper than printing and distributing paper checks. For employees, they make it easy to get cash as soon as possible on payday without the hassle (and potential check-cashing fees) of a bank visit. However, payroll cards have definite drawbacks—especially their fees. If you want to use them, carefully consider your options before signing up.