While it can be an excellent option for employees with no bank account, you’ll have to pay some fees – like charges for ATM withdrawals, balance inquiries, fund transfers, monthly maintenance and account closures. Printing and handing out checks can be expensive, and certain payroll companies may charge extra for direct deposit.įrom a worker’s perspective, it’s essential to understand the different fees associated with payroll cards, as they aren’t exactly like traditional debit cards.
As a result, payroll cards can be an advantageous tool for small businesses with employees who don’t have bank accounts or have limited banking options in their location.ĭepending on which payroll card service in which you enroll, it may be more cost-effective to provide a payroll card option to your workers. Instead, they function like debit cards: Payroll cards are loaded with a paycheck each pay period and can be used to withdraw cash or make purchases. Payroll cards allow employees to access their paychecks without setting up a bank account. The option of payroll cards is a critical necessity for many Americans who cannot – or choose not to – open a bank account. Payroll cards provide easy access to paychecks without the need for a bank account or banking relationship. Research by the Mercator Advisory Group shows that the money loaded onto payroll cards is projected to reach nearly $51 billion by the end of 2021, up from $40.3 billion in 2017. Payroll cards are a growing trend among small businesses.
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