An employer sometimes arranges for a payroll card to be issued to its employees. Instead of the employee paying directly into his/her bank account the payroll card is loaded directly onto the payroll card and not paid by cash or by check. The payroll card is usually a debit card and as such has all the features of any debit card and can be used anywhere a credit card is normally used.
When you apply for a payroll card, you will need to provide personal details and information relating to your company. You will also need to provide details about the account that you wish to establish and usually you will need to show proof of income. Some companies prefer to have a deposit of up to one month in order to start the process of loading the card. If you are approved you will then pay into the account each pay period using this money.
The way that an employee gets paid from their employer is quite different to how it would be if they had set up a payroll card of their own. In the first place an employee will get a cheque from their employer. The employer will take this money and put it onto their own bank account. Then the cheque will be held by the bank for use by the employer. The reason that the employer pays into their own account is that this will help avoid a possible fee being charged to the employee for having their payroll paid electronically. Payroll cards can be very expensive when compared to direct debit.
One of the fees that an employee may have to pay is a service charge. This fee is normally added to the monthly charges but you should check to see if your employer actually incurs this fee or not. Some payroll cards work by allowing the employer to set up a specified date for the payments to be made. The fees that are charged for this service are usually less than the fees that are charged for a debit account. It may be worth setting up a special account just for payroll cards if you need to get this type of payment made on time. Click for more info about payroll cards on this link.
A money network offers payroll cards to its members. This money network offers the payroll card providers to make their card available to its members. These members will then be able to electronically transfer money from their bank accounts to the card provided by the money network. Once the money has been transferred, it can be automatically deducted from the card account of the employee. However, these cards do not offer the flexibility that payroll cards offer.
It is important to know that there are also some disadvantages to using a money network. For example, some employers do not offer the flexibility that a bank does with its customers. As a result, many small businesses have to operate on a cash basis. Some small businesses are forced to accept payroll cards as payment for the goods and services that they provide. To learn more about payroll cards for small businesses, contact one of today's leading payroll card providers.
For more information associated with the article above, see this post: https://en.wikipedia.org/wiki/Payroll.
