Card Transfer

Card transfer is a method of paying employees by transferring their wages to a payroll card instead of a bank account. Payroll cards function like debit cards and can be used to make purchases, withdraw cash, and pay bills.

This method can result in faster and more efficient payments for wages, bonuses, or reimbursements.

What is the difference between a card transfer and a direct deposit?

A card transfer is when companies move money onto a card (ex. for an employee’s salary), while a direct deposit is when a company transfers the money (a salary) into a bank account.

How does a card transfer work?

• Employers use a third-party provider to create a payroll card program
• Employees opt to receive their pay on a payroll card instead of direct deposit.
• On payday, the employer transfers the employee’s wages to their payroll card
• Employees can use the card to access their funds

Benefits of card transfers

• Avoids expenses such as check-cashing fees
• Cost-effective for employees and employers
• Businesses can track transactions and manage and reconcile payments
• Accessible for workers without traditional bank accounts
• Employees can use the funds loaded onto cards for a variety of expenses

Limitations of card transfers

• May have fees for some transactions, such as ATM withdrawals
• Some service companies can put temporary holds on card funds
• Employees typically can’t make deposits into payroll card accounts

Why do employers use card transfers?

Employers can save money by using payroll cards (i.e. card transfers). They can save on expenses related to purchasing manual checks, covering lost or stolen checks, and handling paychecks. Employers can also use payroll cards for unbanked employees.

What Is an unbanked employee?

An unbanked employee is someone who does not have a checking or savings account at a bank or credit union. With card transfers, unbanked employees can still get paid without needing to spend time and money opening a bank account.

Are card transfers safe?

Card transfers can be safe, but may not be completely secure. This depends on the payment provider. A global payment service will provide:

• Fraud protection with a PIN protection code
• Protection measures for lost or stolen cards
• Secure online access
• Compliance with security and payment regulations

Where can employees use pay cards from card transfers?

Employees can cash out wages from pay cards at a bank, ATM, or other location that provides cash back (e.g., grocery stores). Employees can also pay bills over the phone with their pay card number and use them at any merchant that accepts debit cards, including but not limited to: grocery stores, gas stations, and retail shops.

Which countries offer card transfers?

Many countries offer card transfers, including the United States, the Philippines, Jamaica, Thailand, Colombia, El Salvador, India, Nigeria, Poland, Ghana, Dubai, Saudi Arabia, North Macedonia, Kazakhstan, and more.

If employers use card transfers, do they need to provide pay stub information?

Employers should check any state laws regarding pay stubs delivery (wage statements). If employers use card transfers or direct deposit, they may still be required by state law to provide employees with a statement recording their wages, deductions, and other required information.