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What Are Paycards and How Do They Work for Your Business?


Payroll cards make it a snap to pay employees electronically. Even employees who don’t have bank accounts can receive wages with NatPay paycards.

A sizable number of Americans don’t have adequate access to financial services.

The United States Federal Deposit Insurance Corporation (FDIC) recently found that approximately 94.6 percent of American households, or 124 million households, have banking services. That leaves 5.4 percent, or 7.1 million American households, without banking.

NatPay strives to fill that financial service void by offering a useful method to receive and spend money. Paycards help bring them into the mainstream economy, with benefits for employees, employers, and society at large.

Paycards offer a convenient and safe way to pay employees for their work. Instead of traditional methods like paychecks or direct deposit—which obviously don’t work for employees lacking bank accounts. Paycards are functional for anyone. They are also less costly and faster for many businesses, making them advantageous on both sides of the transaction.

A paycard looks and functions the same as an ordinary debit card. Employees can use them to pay for goods and services or to withdraw cash. Most main card networks, including Visa and MasterCard, support employee paycards.


Using Paycards Benefits Employees

Payroll paycards allow businesses to send employees their wages instantly. These cards also offer the ease and security of modern technology instead of a check. Paycard security features decrease the risks of loss of funds drastically, and if any issue does arise, the card issuer can cover the losses.

The security issues and inconvenience of checks affect employers as well as employees. Each check costs an employer approximately $3 when one adds together the total expenses. Payroll cards save time and money while making it easier to reach employees, especially those without banks. A business only has to add funds to employees’ cards, rather than mailing or handing out checks. Not to mention saving paper contributes to preserving the environment!

For employees, using a paycard grants them access to their full funds, without fees, yet with the freedom of an account. Employees can withdraw only the cash they need, rather than cashing an entire check, which also makes paycards safer. The paycards function as a debit rather than credit, protecting employee credit ratings, and the cards also include online tools for managing funds.

In the event that an employee loses a paycard, the issuer can replace it with the entire remaining balance there. Also, employees can use their cards whenever and wherever they want.

While many of the advantages of paycards accrue to those ineligible to use or for other reasons not having banks, even high-income people like using these cards. Employees can manage multiple accounts, or share cards with family members if they want. Rather than depend on a regular check, the paycard functions as another bank account.

Many individuals have felt the pressures of not having a secure method to receive their wages. Employee debit cards make payments rapid and safe so that funds are directly available to purchase what one needs. At the same time, businesses have a more positive experience issuing electronic payments. For both employees and employers, paycards can be an attractive choice.

Securely Pay Employees Using Paycards

Using the dominant payment technology in the industry, NatPay offers employee paycards to handle wage transactions automatically. You simply supply your payroll file, and the system handles payments. Employees receive FDIC-insured cards on which they automatically get their wages as soon as they are paid.

NatPay paycards loop those employees without bank accounts into the advantages of direct deposit. For employers, this streamlines payroll and can cut costs. You’ll have accounting data online already to aid in reconciliation. The paycards work smoothly with other direct deposit systems, and you can also use these cards to reimburse expenses.

Employees can use their paycards free at tens of thousands of ATMs, as well as retailers and online. They can also add cash or deposit checks to their cards themselves. Additionally, employees can receive electronic payments from other sources, such as government benefits. Essentially, NatPay paycards give businesses and employees an easy work bank account, including services like bill payment, customer support, and account notices. Employees can even add further accounts for their relatives!

Setting up and using NatPay paycards is extremely simple. You can have the cards sent to your business or directly to employees, and can even keep spare cards available to hand out right away to new employees. Each card includes its own bank routing and account numbers, making these as fully featured as a regular card—you even make direct deposits to the paycards, same as to a bank account.

Furthermore, you can schedule when to make payments. Employees receive automatic notifications and can see the information when they prefer. Additional online statements are also available, like expense reports or invoices.

NatPay: The Payroll Solution For Your Business

Paycards have become a compelling alternative to checks, and it’s easy to understand why. Paycards offer numerous benefits for businesses and their workers. All employees become eligible for automatic payments, even individuals lacking a bank account. Employees don’t have to worry about cashing checks and have the freedom of a financial institution on their side.

Meanwhile, on the back end, your business becomes more efficient, spending less on paperwork and administration. Employers face fewer problems with lost or stolen checks, fraudulent checks, and fees. Thus, transitioning to paycards is a win-win. Power up your payroll and your employees will thank you!

Contact NatPay to get started setting up your new paycard system today! NatPay is ready to assist you in distributing the cards, along with material to tell employees about all the program’s advantages. It’s time to enhance your payment processes!