Introduction

A paycard is a reloadable prepaid (i.e., stored value) card issued to an employee through a national or regional bank, credit union, or savings and loan association on behalf of his or her employer for the receipt of wages and other compensation. Paycards are also referred to as "payroll cards" and "payroll debit cards." Today, the vast majority of paycards are branded meaning that they bear the logo of a major payment brand such as Visa, Mastercard or Discover. These cards may be used anywhere that the payment brand is accepted.

Paycards bring the benefits of electronic wage payment to employees who are unable to participate in traditional direct deposit because they do not have a bank account. Many employees with bank accounts also enjoy the convenience and flexibility offered by paycards.

Workers who participate in their employer's payroll card program can access their wages in cash in many different ways including over-the-counter withdrawals at bank branches, ATM withdrawals, and by using the cash back feature available at the point-of-sale in many stores. Branded paycards also can be used to make purchases at stores, online and over the telephone. Many of these features are provided to employees without cost. You should review the terms and conditions of the paycard program offered by your employer for details.

An Employee's Guide to Payroll Cards (PDF)