A paycard is a prepaid card used to pay employees in place of more traditional forms such as a direct deposit. Because using a paycard eliminates the need for employees to cash checks or deposit funds at a bank, it’s a good way for employers to accommodate those who don’t have bank accounts.Employees can use paycards similarly to bank-issued debit cards when making purchases, paying bills and even withdrawing cash at ATMs. But paycards can come with employee-paid fees and are regulated in some states. Here’s what you need to know when considering paycards for your employees.????Nerdy TipDon't confuse paycards with prepaid debit cards. Anyone can purchase a prepaid debit card in a store and continually load funds onto the card. Prepaid debit cards aren't associated with an employer.How does a paycard work?Paycards are usually issued by third parties — such as Visa and Fintwist — that take care of the behind-the-scenes logistics. As a type of electronic payment, paycards are connected to a...
