What Is A Paycard?
Paycheck cards or paycards are debit-style cards used to pay employee wages in lieu of traditional paper checks. These direct deposit check cards provide employees with secure access to funds delivered on payday. As with debit cards, a paycard can be used to withdraw money from an ATM, make point-of-sale purchases or transfer money to a personal checking or savings account. Some cards can even be used to rent cars or book airline tickets.
Paycheck cards give employees without access to banking services the ability to get cash without relying on check-cashing services and fees. A paycheck card is also safer than traditional paychecks as there is less risk of loss or theft.
For employers, paycheck card systems have numerous benefits. They cut payroll costs and free up human resources staff time. . They can also reduce or eliminate stop payment fees to banks and help to minimize check fraud. Employers can easily deliver final pay to employees leaving the company and eliminate liability. And for employees, paycheck cards are an added voluntary benefit that can improve satisfaction and increase retention.
For more benefits of paycards, check out this article.