How to Transfer Money from Pay Card to Bank Account

 

How to Transfer Money from Pay Card to Bank Account

 

 

How to Transfer Money from Pay Card to Bank Account: Complete Guide in 2022

 

 how-to-transfer-money-from-pay-card-to-bank-account

Payroll cards are gradually becoming the new trend for small businesses as it is an easy way for employees to receive cash without having to go to the traditional bank.

 

It's great for people who can't (or choose not to) open a bank account.

 

 

 

However, there are several questions about how to transfer funds from these pay cards to a bank account.

 

 

 

Also, if payroll cards are the best option as they are similar to traditional debit cards.

 

Don't worry, you will get answers to these questions by reading this article.

 

What is a pay card?

 

A payroll card is a prepaid card into which an employer charges employees' salaries and wages without opening a bank account.

 

They work like debit cards, allow employees to access their paychecks, and can be used to withdraw cash or make purchases.

 

 

 

Payroll cards are good options for small businesses whose employees don't have bank accounts or don't have many banking options in their area.

 

The movement towards payment cards instead of other forms of payment continues to grow. Payroll card charges hit $40.3 billion in 2017, but are expected to hit $50.9 billion in 2022, according to research by Mercator Advisory Group.

 

As an employer, providing a payroll card can be cost-effective for you depending on the payroll card service you sign up for. Printing and delivering checks can be expensive, and some payroll companies may charge extra for things like direct deposit.

 

 

 

As an employee, it's important to be aware of the other fees associated with payroll cards, as they are not traditional debit cards.

 

 

 

While this is a great option for employees without a bank account, you will still incur fees such as monthly maintenance fees, ATM withdrawal fees, balance inquiry fees, fund transfer fees and account closure fees. The exact fees will depend on the company you are working with.

 

How does a pay card work?

 

When an employer decides to use payroll cards for their workers, the number that will be preloaded on the card is the amount that will normally be in their paycheck.

 

With the payroll card, employees can use it to pay bills and regular expenses just as they would if they received their paycheck the traditional way.

 

 

 

More so, cash cards can be used to get cash from an ATM, which makes them similar to traditional debit cards.

 

 

 

RELATED ARTICLE: How To Withdraw Money From An ATM Without A PIN | Complete Guide

 

Benefits of a pay card

 

Since payment cards are similar to traditional debit cards, they have the following advantages:

 

For employers, payroll cards are cheaper and more convenient ways to pay workers.

These are easy ways for employees to access their paychecks without having a bank account.

If a payroll card is lost or stolen, it can be easily replaced (for a fee)

There is no risk of debt or financial liability, as the card is a debit card and not a credit card.

It is a practical option. There is no need to go to a bank to cash a check or check in to see if your deposit has reached your account. You can access your funds immediately and easily.

It's easy to receive a payment if you don't have a bank account.

Disadvantages of payroll cards

 

The downside of using payroll cards includes:

 

Employees who use payroll cards may incur fees when they access an ATM or use their cards to make purchases.

They do not offer the same advantages as a bank account, such as favorable interest rates.

Payroll card users are charged for everything they do, including checking their balance.

Unlike direct deposit, payment cards can be lost or stolen.

Depending on your industry, this may not be a good payment option

Paying bills with a payroll card wouldn't earn you money the way you can with a rewards credit card.

Payroll cards are debit cards, so they offer fewer consumer protections than credit cards with no fraud liability.

RELATED ARTICLE: 15 Best Cash Advance Apps That Help You Until Payday | 2022

 

Is a pay card right for you?

 

Before agreeing to receive payments from someone with a payroll card, you should know that your employer cannot legally present it as the only method of payment.

 

According to the Consumer Financial Protection Bureau (CFPB) , they must offer you at least one alternative payment option.

 

More so, state law determines what options your employer must offer you and whether they must obtain your written consent before paying you with a payroll card.

 

The CFPB Prepaid Rule, which came into effect in 2019, also requires employers to present information to you before they begin accepting payment with a payroll card.

 

Although payroll cards are a convenient way to receive payments, it is still important that you know your rights and the other options available to you.

 

Specifically, if you don't have a bank account and don't want to open one, a payroll card may be the best option for you.

 

SEE ALSO: How to start a business with bad credit in 2022 | Expert \ Lessons

 

Pay card providers

 

There are several payroll service providers available for small businesses. Some payroll service providers offer payroll cards as a way to pay employees.

 

If you work with a major payroll service provider, talk to your representative about the effects of paying by payroll cards.

 

Either way, there are a few payroll card providers to consider according to the American Payroll Association .

 

#1. silver network

 

Money network offers payroll cards and an intuitive online experience to manage your payroll card offering.

 

The company offers enhanced security, flexible limited liability deposit options and zero liability protection. Its zero liability protection means employees are covered if anything happens to their payroll card.

 

Money Network has over 20 years of experience as a prepaid debit processing company and all of their funds are FDIC safe.

 

Click the button below to find out more

 

SILVER NETWORK

#2. American bank

 

US Bank provides payroll cards to small businesses, making it one of the few major banking institutions to support payroll card initiatives.

 

Its payroll card initiative is called Focus and includes fraud protection, online shopping and 100% electronic payments.

 

Additionally, it provides SMS and email alerts, cashback programs, savings account features, and a mobile app.

 

US Bank is one of the major players in the financial industry, so you have nothing to worry about.

 

Click the button below to find out more.

 

AMERICAN BANK

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#3. wisely

 

Wisely is a payroll card provider backed by ADP, one of the largest payroll processing and human resource management companies in the United States.

 

The company offers free access to cash at ATMs and banks, as well as cash back at retailers. This is a unique feature, given that one of the major drawbacks of payroll cards is endless fees.

 

Moreover, Wisely provides its users with applications where they can manage funds. It also offers multiple funding sources so you can sign up for part-time paychecks.

 

Click the button below to find out more.

 

WISELY

 #4. Skylight ONE Car Net Spend

 

Netspend is one of the largest payment programs in the United States. It offers unique features such as flexible registration, electronic reporting, and an online portal where employees can view online deposits and pay statements.

 

As a full-service partner, this company also helps small businesses implement and manage payment card programs.

 

To learn more about Netspend, click the button below.

 

NET EXPENSES

#5. Fast! Payment card

 

Fast! PayCard offers many features in its payroll service. One of the major characteristics is its 100% e-payroll solution for its customers.

 

There are several distribution options, including e-wallet payments, digital checks, and a host of payroll cards for your employees to choose from.

 

More so, it offers instant payment and electronic payroll delivery at no cost to employers, along with many other convenient features.

 

Click the button below to find out what they have to offer.

 

FAST PAYMENT CARD!

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How to transfer money from a pay card to a bank account

 

Transferring money from your payroll card to a bank account can be easy or complicated depending on your payroll card provider.

 

Unfortunately, there isn't much information on how you can easily transfer funds from your payroll card to a bank account.

 

Some companies build it into their offerings, while for others you may need to speak to your bank or payroll card provider.

 

Conversely, payroll cards are the best option for workers without a bank account. While direct deposits are best for employees with a bank account.

 

If your employer offers you a payroll card, there must be other options like direct deposit or paper check.

 

Different government laws require employers to offer multiple payment options.

 

In general, if you want to transfer money from your payroll card to your bank account, it's best to talk to your bank officer or your employer. Keep in mind that you might have to pay a fee to get there.

 

RELATED ARTICLE: Transfer Money From Gift Card To Bank Account | Easy step by step guide in 2022

 

Payroll Debit Card Regulations

 

Although payroll cards are by definition different from prepaid debit cards, the laws that support them are still the same.

 

According to the Consumer Financial Protection Bureau (CFPB) , card issuers are required to clearly disclose their pricing structure. You also have protections in case of loss or theft of your card or PIN and fraudulent charges.

 

Additionally, prepaid and payroll card providers must also provide at least 21 days written notice.

 

If you decide you don't want a Visa pay card or whatever your employer offers, you don't have to use one. Employers must offer you at least one alternative to payroll debit cards.

 

More so, some states may have stricter laws regarding payroll debit cards. For example, in  Illinois , employers must offer at least a paper check as an alternative to debit cards.

 

Alternatives to pay cards

 

According to Credit Cards , the most common alternatives to payroll cards include a direct deposit into your bank account or a paper check.

 

These options can make it easier to manage your payments on your own terms, but you'll need a bank account to accept direct deposit payments.

 

Fortunately, some bank accounts require no fees and options with fees that are easy to avoid.

 

In fact, many of the best checking accounts offer easy online access, no minimum balance requirements, a free debit card, and many other perks that can make traditional banking more convenient.

 

SEE ALSO: 17 creative ways to make money in 2022

 

Conclusion

 

Payroll cards are a great way to receive payments from your employers. Although it's not the best option, it's the most convenient for those who don't have a traditional bank account.

 

More so, if you have a bank account and want to transfer your funds there, then you need to contact your bank agent or employer.

 

Good luck !

 

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