What Are and Why Paycards?
- Topics:
- Payroll
- Tags:
- Bank,
- Payroll Solutions,
- Payroll,
- Paycards,
- Paycard Process,
- Paycard,
- Operational Accounting,
- Individual Paycard Account,
- Financial Services,
- Finance,
- ...
- Source:
- Payroll Taxes.com
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Overview: Paycard is on of the method of making the payment of salary to the employee. Paycards are bank debit cards that are linked directly to payroll deposits. These specialized debit cards can be restricted or enhanced, depending on the vendor. Paycards fall into three basic classes. First, there are branded paycards – Visa / MasterCard. These paycards are issued by Visa / MasterCard partner banks. Each bank has their own process and fee schedule. These paycards are also called “signature” cards because they can be used without a PIN. Second, there are vendor branded bank account paycards. These paycards are issued under specific vendor logos. Each paycard is a true FDIC insured bank account that has restrictions, such as no personal checks. The paycard processes are established by the vendor as are the fees. All transactions are PIN verified. Third, there are vendor branded, stored value paycards. These paycards are issued under specific vendor logos, with their own processes and fee schedules. All transactions are PIN verified. These paycards accounts are sub accounts of a master bank account that is owned by the employer or a third party. Individual paycard accounts are not FDIC insured.
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Format: HTML | Date: Jan 2003 | Pages: 1
