What is a paycard?
A paycard (or payroll card) is an alternative to a traditional bank account or paper check that allows employees – particularly the unbanked and underbanked – to be paid electronically via direct deposit. 25%+ of the US workforce is unbanked, underbanked or financially underserved. The FDIC defines an unbanked household as one in which “no one in the household has a checking or savings account, while an underbanked household is noted as onoe that may have a bank account, but also uses alternative financial services like check cashing, payday loans, money order, rent-to-own services, and/or other subprime products. The use of these services can indicate that, while the household may have a bank account, they are not using it. By implementing the Plata Pay’s paycard program, employers offer their employees easier, and less expensive, access to their own money. Amazingly, the American Payroll Association notes that that paycards are “80% less expensive than check cashing services.”
How do paycards work for employers?
Employers can instantly simplify payroll by offering paycards as a solution for their employeess. Plata Pay works exactly like any other direct deposit. All the employer has to do is distribute the paycards and update the payroll files by entering each paycard’s account and routing numbers. It’s that simple. The only difference is – when a new hire starts or an existing employee loses their card – Plata Pay supplies employers with an inventory of temporary cards to fill the gap until the employee receives their personalized, permanent card.
Employer Benefits:
How do paycards work employees?
A paycard works exactly like any other card, and cardholders can swipe their paycard as debit or credit. Employers implement Plata Pay as an option, but once activated, the card belongs to the employee. This means that employees can take their card with them to new jobs in the future, regardless of whether they still work for the original employer who initiated the program. Additionally, cardholders can also have government benefits, tax refunds and other services deposited directly onto their paycard by using their personal account and routing numbers.
Employee Benefits:
How do paycards work for employers?
Employers can instantly simplify payroll by offering paycards as a solution for their employeess. Plata Pay works exactly like any other direct deposit. All the employer has to do is distribute the paycards and update the payroll files by entering each paycard’s account and routing numbers. It’s that simple. The only difference is – when a new hire starts or an existing employee loses their card – Plata Pay supplies employers with an inventory of temporary cards to fill the gap until the employee receives their personalized, permanent card.
Employer Benefits:
- Save money by avoiding paper check costs
- Spend less time and resources on the payroll process
- Provide a great service for your employees
How do paycards work employees?
A paycard works exactly like any other card, and cardholders can swipe their paycard as debit or credit. Employers implement Plata Pay as an option, but once activated, the card belongs to the employee. This means that employees can take their card with them to new jobs in the future, regardless of whether they still work for the original employer who initiated the program. Additionally, cardholders can also have government benefits, tax refunds and other services deposited directly onto their paycard by using their personal account and routing numbers.
Employee Benefits:
- Save money by avoiding check-cashing fees
- Send money to family and friends with the Plata Pay app
- Pay bills online and instantly remit money internationally
- Make online and in-store purchases with your card