Payroll Card Program

A Payroll card (or paycard) is a prepaid card that employers can use to pay employees. Payroll cards are an alternative to direct deposit or paper checks. These cards are manufactured by major payment processors, such as Visa, allowing workers to use them anywhere electronic payment cards are accepted.

Each payday, the card is loaded with the employee’s wages for that pay period. Employees can use the pay card like a debit card, or they can withdraw wages through an ATM, bank cashier, or purchase where they receive cash back.

Pay cards are beneficial to employees that are unbanked, meaning they do not have any bank accounts.

Employers can save money by using pay cards. Paycards are reloadable, so employers do not need to purchase new cards for every pay period, like they would have to do with paper check stock. Pay cards can also be used like debit cards at most businesses since they are often distributed by common card companies, e.g., Visa, MasterCard.

Employees don’t need to have a good credit score or any credit history to receive and use a payroll card, because it isn’t a credit card. It’s impossible to go into debt with the card because there’s no credit available and no overdraft allowed. Payroll cards can be replaced if they are lost or stolen, without loss of funds. Employees can also add funds to their payroll cards; they aren’t limited to only having payroll funds added by their employer.

At Connecto we can help your company develop and structure a Payroll Card program for your employees. Start reaching your business goals with our tech and expertise.Connect with us to schedule a conversation.