Payroll Cards - The Truth

Is your employer trying to convince you to use a payroll card? There are many factors to consider about the payroll card before you make a decision. Over 60% of Americans use some form of direct deposit today for their payroll checks. This is done to not only save your company money, but to save you time and money as well. However, what do the people who do not have access to a bank account do?

Today, about 60 million people do not have bank accounts. So cashing a payroll check can be difficult to do without paying a substantial amount of fees. It can be difficult for these individuals to make online payments or pay bills. Many of these same individuals do not have any form of credit card either. Businesses have created a payroll card to help people in this situation.

There are two types of payroll cards available to businesses. You need to know which kind your company is offering in order to make an informed decision. The first is the stored value card or SVC. The second is the bankcard. The SVC card is a card on which the amount of your payroll has been stored. You have a pin number and can withdraw money from the card at any ATM just like a debit card. A major difference is that you cannot use the SVC at a register. Although the funds that your employer has in the master account are insured by the FDIC, individual accounts, like yours on the SVC, are not insured.

The bankcard is FDIC insured and you can use this payroll card just like debit cards. Some payroll bankcards have the Visa or MasterCard logo. No matter which type of payroll card the company offers, both have major benefits for you. Your funds are available immediately. Everyone qualifies for a payroll card; there are no requirements to prevent you from getting one. You will be able to avoid check cashing fees, have a PIN to protect your funds, can purchase items through and POS, and can transfer funds or pay bills online.

The payroll card is an excellent tool for those who do not have access to a bank account as long as you know which type of card is being offered. Always ask questions and you will have the truth you need!