Due to the recent growth of the pay card industry in the past decade, not everyone is aware of what exactly a pay card is or why it is better than a paper check. A pay card is a pre-paid debit card that employers provide to employees that do not have bank account so that the employer can pay all employees electronically, via direct deposit. It is not a credit card and requires no credit check or checking account.
There are two different types of pay cards:
Branded-(Visa, MasterCard, Discover)
- ATM withdrawal
- PIN POS
- PIN POS Cash back
- Credit (Signature)
Pin based-(Non-branded/ATM card)
- ATM withdrawal
- PIN POS
- PIN POS Cash back
The credit feature on branded pay cards allows the cardholder a feeling of dignity by letting them do things a normal pin based pay card would not, such as shop online, pay at a restaurant, rent a hotel or pay your bills over the telephone.
Pay cards save employers and employees money. Companies save money because the price of loading a pay card is cheaper than paying with a paper check. Pay cards eliminate all overdraft fees, a fee that is usually 35 dollars. They will also save money in gas by no longer having to drive to pick up and cash their checks. This gives them a feeling of security.
Pay cards do not only help to save money, they help to save the environment. By eliminating paper check companies are helping to save trees, fuel and energy, conserve water and reduce green house gases.
The following items are the conveniences that come along with a pay card:
• Cash back available when using card
• Worldwide locations to access money
• Quality providers eliminate overdraft fees
• Easy bill pay with the card
• Easy transfer of money from card to any bank
• Companion card available for family member use
• Text Message Alerts
