Debit Card Services

If an employee does not have a traditional checking or savings account in which to deposit payroll checks, we can deposit their earnings into a debit card account. They withdraw funds much like using an ATM card. This solution is ideal for workers who would otherwise pay for a check- cashing service and may be used for either national or international payments.

Structure of a Payroll Debit Card Account

The payroll debit card is considered a “host-based” technology. The value of each card is stored on a central computer. The physical card is connected to this account, which records the movement of money in- and-out in real-time. Therefore, the payroll balance is always current. A PIN is required to use this type of card so it is considered “non-qualified” card, meaning there are no qualification standards for issuance to an employee other than name and address.

If the debit card is lost or stolen, as long as the PIN number has not been released, the funds associated with it cannot be spent.

Replacement cards with the full balance in place can be issued for a nominal charge. Payroll debit cards are far safer to carry than cash and cannot be overdrawn.

Funds are loaded onto the card directly through payroll either as a standard direct deposit ACH transaction or as a non-ACH funds transfer to the payroll debit card account. Employees may specify their payroll earnings be deposited and/or government payments and earnings received through another employer. In addition, they may transfer funds from one payroll debit card to another, saving on the high cost of ordinary money transfer services or fees associated with the unbanked check- cashing locations. The payroll debit card should be considered an employee benefit.

As the employer, you can use the payroll debit card for termination pay, exception pay and expense reimbursements along with regular pay period earnings. This is an ideal solution, especially if you have multiple employees spread across multiple locations.

Benefits of a Payroll Debit Card
To Employers:

• Eliminates paper checks along with associated costs
• Ease of combining and producing termination pay, exception pay and expense reimbursements
• Reduces problems of distributing paychecks to employees in multiple or distant locations
• Increases cost-savings available under direct deposit payments to all payroll payments

To Employees:

• Account cannot be overdrawn
• Security through PIN-based accounts
• Ease of fund transfer from one payroll debit card to another
• No fees often associated with check cashing

The debit card sector is the fastest growing element of the card services industry. The payroll debit card is easy for employers and employees. The results for both are effective time management, increased security and significant cost-savings.