If you're a worker, you may be wondering what a payroll card is, and how it differs from a standard bank account. In this article, you shall learn here the benefits of payroll cards and the fees associated with them. You should also know that most states have passed legislation regulating payroll cards, and that at least 12 more are considering legislation in 2015.

 

A payroll card works just like a standard debit or credit card and gives employees immediate access to their paycheck. Employees can use it anywhere that accepts debit cards, including online stores. These cards also enhance financial wellness, as employees can use them to save money and pay their bills. Some companies even offer financial planning tools to help employees build a savings account and increase their savings. An employee who has the tools to make smart financial decisions is more likely to be happier and more productive.

 

A payroll card can come with liability limits similar to a debit card. The liability limit is $50 for unauthorized purchases if the cardholder notifies the issuer within two business days of the transaction. However, some companies have stricter liability limits than others. Therefore, it is important to read the terms and conditions of the company you're planning to use. A payroll card can also come with a range of protections, and it's best to make sure yours does.

 

Before you decide to use a payroll card, it's important to review the fees. While a payroll card typically does not come with monthly fees, there may be a variety of other fees, so it's best to carefully read the fine print and compare the various options before making a decision. The financial institutions that issue payroll cards are required to disclose all fees and other details upfront. So make sure you  go to website and read the fine print carefully before signing up for any card.

 

A payroll card is portable, which means that you can use it with another employer. It's easy to use a payroll card with another employer if you change jobs. You can also receive funds from other sources on the same card. It will have a routing and account number. Once again, the card issuer should let you know if it's portable. You'll be glad you did! It's worth checking if you're considering this option for your employees.

 

The payroll card can be a useful alternative to a bank account, particularly if you don't want to set up a separate bank account for them. You can withdraw cash from an ATM or pay bills online with a payroll card without a bank account. It's also useful for keeping track of purchases, ATM withdrawals, and bill payments. You'll also be able to set a budget for your expenses. And it's all reloadable. This post: https://en.wikipedia.org/wiki/Payroll elaborates more on the topic, so you may need to check it out.