What Are Pay Cards And How Do They Work?
One of the first documents a new hire completes is one that explains how they choose to be compensated each pay period. Usually the employee chooses between one of two routes - directly deposit the money into a bank account or receive a check. Now there is a third way employees can receive compensation, pay cards. There are many benefits to both employer and employee that may encourage your company to consider offering this option.
So how do pay cards work?
Pay cards are prepaid. In the article, "How Does a Payroll Debit Card Work?" by the Chron.com, pay cards are explained similarly to debit cards, but there is no bank account tied to the card. The money amount earned in the set pay period is placed on the employee’s card directly so employees can purchase items or withdraw money from an ATM as if it were a debit card. There is no way to add money to that card other than through payment from the company the employee works.
Bank accounts are not needed to use a pay card. So for those who don’t have a bank account, there’s no need to open an account just so you can directly deposit your money, nor do you have to deal with the hassle of paying a fee to get the cash when paid by check.
What’s so great about pay cards for employers?
1. The program itself is free
2. It’s simple to use
3. Checks get misplaced, cash directly deposited to cards do not
4. Easy to access the portal
How does it benefit employees?
1. Employees have many ways to access their funds
2. The cash is insured
3. Secure, secure, secure
4. Pay cards are useable wherever debit cards are accepted
5. Portal access – it’s available 24/7 through text, email, phone and online
BenefitMall provides a program under Skylight PayOptions, which allows employers the option to offer their employees pay cards. When choosing a pay card, please be sure to contact a representative of BenefitMall to make sure you are getting exactly what you are looking for. We want to make sure you are informed, protected and your employees’ finances are secure. Learn more about BenefitMall’s pay card services and complete the form on the page to have a BenefitMall representative contact you to discuss your options.