What is a Payroll Card, and Who Can Use One?

Do you have employees without bank accounts that you must issue paper checks to? Wouldn’t it be great if everyone could have direct deposit? They can, with a payroll card.

Payroll cards offer a convenient and electronic way for “unbankable” employees to receive their pay without having to give them a paper check.

Wondering if a payroll card can help you?

By the end of this article, you’ll know how payroll cards benefit employees, streamline payroll processes, and protect against fraud. And then, you can decide if you should use them within your business.

What is a Payroll Card?

Imagine getting your hard-earned money directly deposited into a virtual bank account. That's exactly what payroll cards do for employees who don't have a bank account.

They receive a debit card linked to their virtual account, allowing them to pay bills, withdraw cash, make purchases, and even transfer money back to their home country.

No more dealing with checks, driving long distances, and paying high transaction fees to cash them.

Can ITIN Workers Use Payroll Cards?

Let's talk about how payroll cards make a real difference for workers who have Individual Taxpayer Identification Numbers (ITINs) but don't have traditional bank accounts.

These workers, which include non-U.S. citizens and individuals without a Social Security Number, often face challenges when it comes to accessing financial services.

That's where payroll cards step in to save the day!

With payroll cards, ITIN workers get a reliable and convenient financial tool. It's like having a bank account in their hands.

They can receive their wages through direct deposit, pay bills, transfer money outside the US, and even withdraw cash from ATMs—just like anyone else.

All in all, payroll cards have transformed the way businesses distribute wages, especially for employees without traditional bank accounts.

They bring efficiency, convenience, and added security to the table.

By simplifying payroll processes, reducing reliance on physical checks, and offering advanced security features, payroll cards empower employees and create a more inclusive and secure financial experience.

So, whether you're working remotely or on-site, payroll cards are here to make your work life easier and ensure you get paid hassle-free.

Can Your Family Members Use Payroll Cards?

Many employees have children who are too young to have a bank account with their names on it.

So, imagine this.

You could get your twelve-year-old a payroll card with his name on it and have $25 deducted from your pay every payroll and loaded onto your son’s payroll card.

Now your son has money (or allowance as we used to call it) to go bowling and go to the movies, and if they lose the payroll card, no big deal because they did not lose their money.

And best of all, it’s a debit card and not a credit card, so they can only spend the money that is pre-loaded onto the card.

Winner, winner, chicken dinner.

What are the Other Benefits of Payroll Cards?

Enhanced Security:

One of the worries with debit cards is fraud. In the past, scammers took advantage of debit cards by quickly draining funds.

However, with reputable payroll automated clearing house (ACH) companies providing exclusive payroll cards, those concerns are addressed.

By sticking to debit cards from trusted US-based ACH providers, businesses can ensure their employees' funds are safe and sound, protecting against any fraudulent activity.

Employee Self-Service:

Here's where things get even better for employees.

With payroll cards, each employee gets their own self-service portal.

It's like having a personal dashboard where they can easily check their pay statements and stay on top of their finances.

On payday, employees receive an email notification saying their debit card money has been loaded and a deposit was sent.

Often, they get a text alert confirming every deposit.

Or they can then log into their account using the payroll card's mobile app or website, ensuring they're always in the know about their debit card balance.

Not All Payroll Cards Are Created Equal:

While many payroll companies offer them, the strongest security measures are found when partnering directly with the payroll company’s ACH provider.

They are the arm of the payroll company responsible for moving all the money around.

By relying on payroll cards exclusively provided by their payroll company's trusted ACH partner, businesses can minimize potential risks and offer their employees a more secure experience.

It’s Like You Have a Bank Account:

Your employees can access over 40,000 ATMs to get their cash. Using payroll cards makes the payroll payment process hassle-free for your “unbankable” employees and givers them quick, easy access to their hard-earned cash.

And best of all, it’s free to you, the employer, to offer and provide payroll cards. It’s a win-win.

Payroll cards act as direct deposit accounts for employees without bank accounts.

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