What You Need to Know About Payroll Cards

Is your employer telling you that the company is going to offer payroll cards and the company would like you to sign up for the program? You need to ask a few questions to determine if you want to be part of this program. Two different types of payroll cards are available and to make a good decision, you will need to know which the company is offering.

The first type of payroll card is known as a stored value card or SVC. If the company if offering the SVC payroll card this means that your payroll check or earning will be credited to the card and you can take this card to any ATM to withdraw money with a pin created for you. It is like a debit card except that you cannot use this card at any register to buy products. Another difference is that your funds are not insured against loss by the FDIC like those on a debit card are.

The second type of payroll is the bankcard. Bankcards are insured by the FDIC and your money is protected. Your bankcard may or may not have a Visa or MasterCard logo on it. If it does, you can use it as you would a credit card anywhere those two cards are accepted. You can use the bankcard at registers or ATMs and you will have a pin number to go with it as well.

A payroll is a great tool for employees because no one can be rejected or turned down based on their credit. Money deposited to the payroll card is immediately available and you can avoid the hassle of having a bank account or dealing with checks. Your money is still protected from theft by the use of the pin number. Once you know which type of payroll card your employer is offering, you can make an informed decision on whether or not to accept the card.