A payroll card is basically a prepaid debit card on which an employee's wages or monthly salary is loaded every payday. Payroll cards are an easy alternative to paper checks or direct deposit. This option can help save you from writing out paper checks by the dozens or even by a hundred depending on how many employees are on the payroll at one time. Instead, you will only need to print out one or two each pay period. In addition to this, payroll cards offer many other advantages such as: The biggest benefit of a payroll card is the speed in which it can get your money deposited into your bank account. Many employers prefer not to debit employees wages until the next payday, because doing so increases the risk of the employee not being able to pay the bill. A payroll card has no overdraft fees and no charge for late deposits. It is also much easier for employers to track expenses on a prepaid card versus paper check since the date the item was written is not important. In fact, most companies allow PayActivcards to be written at any point up to three months after which they may be debited from the card. Another benefit is that an employee is not forced to accept the payroll card provided by their employer if they do not want it. As long as the employer has funds available in their company pocket to cover expenses incurred, then they can decide whether or not to use the payroll card. Of course, they can also refuse to issue the payroll card if the employee does not have the funds available. If an employee has to take a loan out of their own funds in order to purchase a payroll card, then the loan amount is subject to approval by their employer. This is much less of a problem for employers than trying to get a person to write a check (with bad credit) or take out a loan with them. One more benefit that makes using a payroll card very attractive is that many employers are now allowing their employees to deposit the money into their bank accounts instead of saving it in a bank account. This allows employees to easily pay their bills in cash. The money deposited into a bank account can be withdrawn by the employer just by access code given to the card. This solves one of the primary problems that occurs when people cash pay checks: it eliminates the need to write a check and then go to the bank to pick it up. To understand more about this, follow the link. There are a couple of drawbacks to payroll cards that employers should be aware of. First, since the payroll cards carry a processing fee, it can actually raise the total salary that an employee receives. When employees access their cards online instead of using cash, it takes longer to process the salary since there are fewer transactions. In addition, payroll cards often only allow for a specified number of payments per month. If an employee receives a salary that they can not exceed, then they will not receive extra money for additional raises or promotions. Every year, Congress passes a law that requires that all employers who issue payslips must offer a federally authorized electronic program to their employees. The most common program is called EFT (Exchange For Federal Employment) and is available for federal employees. All states require businesses to offer this same federally approved program, but the majority of businesses are still choosing to go with the EFT. Because it's easier for an employer to administer, doesn't require any paper work and provides real-time processing, the federal law requiring employers to offer payroll card programs to their employees is having little effect on the cost of payroll cards. See facts, visit https://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-and-maps/payroll.