If you have a payroll, you have probably heard about a payroll card. While this type of card is similar to a prepaid card, you can also use it to withdraw cash from an ATM or get a cash advance. However, unlike a prepaid card, a payroll card is not required by your employer. Instead, it can be used for a variety of reasons, including avoiding overdraft fees, setting aside funds, and shifting funds efficiently. Payroll cards allow you to deposit approximately 90% of your paycheck into your bank account, whereas 10% of your pay can be put toward a college student card or for any other purpose. Read on to discover more about payroll cards.

 

While a payroll card is often free, there are fees involved. Some cards charge a monthly account maintenance fee, a replacement card fee in the event of theft, or a fee for specific transactions. Some cards have a $0.50 fee for balance inquiries at ATMs, and others charge a two-cent fee for out-of-network ATM transactions. You should make sure to read the fees and other terms and conditions associated with your payroll card so that you can avoid any unexpected fees in the future.

 

In addition to regulating the fees, payroll cards are subject to federal law. These laws protect employees when it comes to receiving their wages. While participating in a payroll card is optional, employers should be transparent with their employees about its benefits and drawbacks. They must also make sure that employees are aware of any fees that are incurred when a payroll card is used. The federal law governs minimum wages, and a payroll card is designed to help employees receive their paychecks.

 

To protect the safety of the funds and the account, employers should use network-branded payroll cards. These cards are insured by the government up to $250,000. Aside from zero liability protection, network-branded payroll cards also provide the added security of deposit insurance. Make sure to ask your payroll card issuer about whether they offer FDIC or NCUA insurance. These two policies are critical when deciding on a payroll card for your employees. You should consider all of these factors before making a final decision. For more details about payroll cards, click here: https://www.payactiv.com/paycard/.

 

Using a payroll card is easy, but it comes with a few drawbacks. While it may be convenient for many employees, the fees associated with the cards can be quite costly. Some ATMs charge a high fee for checking the balance. In addition, many state laws require employers to disclose any fees associated with payroll cards. However, employers must not make payroll cards mandatory unless it is completely necessary. Furthermore, employers should not charge employees for using them. If they do, they should make sure that they offer employees other options.

 

A payroll card can save employers money by allowing them to offer cards to their employees who do not bank. They can also enable their employees to access their wages through online and mobile payment methods, as well as make automatic bill payments. Some payroll cards come with additional fees, such as a monthly maintenance fee, out-of-network ATM fees, and balance inquiry fees. A payroll card is also useful when budgeting because it can help track expenses and help manage their finances. You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/Payroll.