How a Paycard Works

Paycards operate in a manner similar to traditional debit cards that are linked to a checking and/or savings account held by individual consumers at any given financial institution. The primary difference between these two types of cards is that an employer establishes a banking relationship with a specific financial institution as opposed to the employees doing so on their own.

Once the employer creates a paycard account for the purpose of paying wages, the employer issues paycards to employees and begins to electronically deposit wages into the paycard account every pay period.

Most programs provide employees with at least one free means of accessing their full wages each pay period without fees. This practice enables employers to meet their legal obligation to pay workers their wages "without discount," as required by many state wage and hour laws.
 

Still Have Questions?

Find answers on the Frequently Asked Questions or FAQ page.
Employee FAQ.