Looking to transfer money from Payroll card to bank account? Stick around as we'll see the different options you have to transfer the funds.
Payroll cards offer a simple and convenient way for cardholders to receive payments from their employers — you don't even need a bank account to receive your funds; — however, you'll consider moving the funds to a bank account if in case you want to make the funds even more flexible.
Sadly, unlike prepaid cards that let you transfer money to a bank account, Payroll cards don't offer a direct procedure to complete such transfer. However, there are lots of indirect methods you can use to transfer the funds.
Kind of confused on where to start? Don't worry, we got you covered.
To address this issue, we'll show you the best ways to transfer money from Payroll card to bank account.
Table of Contents
What is a Payroll Card?
A payroll card is a prepaid card that an employer may load with their employees' wages and salary without having to open a bank account.
They work similarly to debit cards, allowing employees to access their paychecks and withdrawing cash or making purchases.
Payroll cards are a wonderful choice for small firms with employees who do not have bank accounts or who do not have many banking options in their area.
The use of credit cards rather than alternative forms of payment is on the rise. Loads on payroll cards reached $40.3 billion in 2017, according to Mercator Advisory Group study, but that figure is expected to rise to $50.9 billion by 2022.
Depending on the payroll card service you choose, offering a payroll card may be cost-effective for you as an employer. Printing and distributing checks can be costly, and some payroll agencies may charge extra for services such as direct deposit.
Because payroll cards are unlike standard debit cards, it is crucial for employees to understand the various expenses associated with them.
Even if it's a great alternative for employees who don't have a bank account, you'll have to pay monthly maintenance costs, ATM withdrawal fees, balance enquiry fees, fund transfer fees, and account closure fees. The fees you pay will vary depending on the company you work with.
How Does a Payroll Card Work?
Depending on the payroll card service you choose, issuing a payroll card may be cost-effective for you as an employer. Printing and distributing checks can be costly, and some payroll agencies may charge extra for services such as direct deposit.
Because payroll cards are unlike standard debit cards, it is crucial for employees to understand the various expenses associated with them.
Even if it's a great alternative for employees who don't have a bank account, you'll have to pay monthly maintenance costs, ATM withdrawal fees, balance enquiry fees, fund transfer fees, and account closure fees. The fees you pay will vary depending on the company you work with.
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Benefits of a Payroll Card
Just as debit cards, Payroll cards offers many benefits of which some have been listed below.
- Payroll cards are a more cost-effective and easy option for employers to pay employees.
- It's a simple way for employees to get their paychecks without needing to have a bank account.
- A payroll card can be readily replaced if it is lost or stolen (for a fee)
- Because the card is a debit card rather than a credit card, there is no risk of debt or financial liability.
- It's a practical choice. There's no need to visit a bank to cash a check or verify if your deposit has been received. You can get to your money quickly and easily.
- If you don't have a bank account, it makes it simple to receive a payment.
Disadvantages of a Payroll Card
Payroll card have some disadvantages too as shown below.
- Employees who use payroll cards may be charged fees if they use their cards to visit an ATM or make a purchase.
- They don't offer the same advantages as a bank account, such as low interest rates.
- Users using payroll cards are charged for anything they do, including checking their account balance.
- Pay cards, unlike direct deposits, can be misplaced or stolen.
- It may or may not be a good payment choice depending on your industry.
- You won't be able to earn cashback with a payroll card like you can with a rewards credit card.
- Payroll cards are debit cards, which means they have fewer consumer protections than credit cards that have no fraud liability.
Is a Payroll card right for you?
Before you accept payments from someone who uses a payroll card, keep in mind that it is illegal for your company to use it as the sole means of payment.
They must provide you with at least one other payment option, according to the Consumer Financial Protection Bureau (CFPB).
More importantly, state law dictates which alternatives your employer must provide you with and whether they must seek your written agreement before paying you using a payroll card.
Employers must also provide you with disclaimers before accepting payment using a payroll card, according to the CFPB's prepaid regulation, which entered into effect in 2019.
Although payroll cards are a handy way to receive payments, it's still critical that you understand your rights and other options.
A payroll card may be the best alternative for you if you don't have a bank account and don't want to get one.
Payroll Card Providers
For small businesses, there are various payroll card providers to choose from. Payroll cards are a type of compensation offered by some payroll providers.
If you work with a large payroll provider, talk to your representative about the implications of using payroll cards.
According to the American Payroll Association, there are a few payroll card issuers to consider including;
1. Money Network
Money Network provides payroll cards as well as an easy-to-use internet platform for managing your payroll card operation.
Enhanced security, various deposit alternatives, restricted liability, and zero-liability protection are all available through the organization. Its zero-liability protection ensures that employees are covered if their payroll card is lost or stolen.
Money Network is a prepaid debit processing company with over 20 years of experience and all monies are insured by the FDIC.
Features
- Zero activation fees.
- Mobile application to track deposits and statements.
- FDIC insured.
- Strict and regulated security to avoid fraud.
- Zero liability protection.
2. U.S. Bank
Payroll cards are provided by U.S. Bank to small businesses, making it one of the few major banking institutions to support the effort.
Focus is the name of the company's payroll card program, which includes fraud protection, online shopping, and 100% electronic payments.
Text and email alerts, cash-back rewards programs, savings account features, and a mobile app are also available.
You have nothing to be concerned about because U.S. Bank is a major player in the financial market.
Features
- FOCUS: Payroll card initiative.
- Text and Email alerts.
- Cash Back Rewards and offers savings account.
- User-friendly mobile application.
- Cash reload networks.
3. Skylight ONE (Netspend)
Skylight ONE is well-known for meeting all of the needs of its customers. It provides cardholders with a variety of discounts, assists employees in managing their finances, and allows them to receive their salary in a few of days.
Features
- You can open an account with $0 balance.
- Zero activation fee and flexible enrollment.
- Online portal to view the complete track of transactions and deposits.
- Agile customer support.
- Netspend scholarship programs.
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4. Wisely
Wisely is a payroll card company supported by ADP, one of the country's major payroll processing and HR management firms.
The company provides fee-free cash withdrawals from ATMs and banks, as well as rebates at merchants. Given that one of the biggest drawbacks of payroll cards is the never-ending fees, this is a unique function.
Wisely also offers apps that allow customers to manage their money. It also has several funding options, allowing you to link to part-time earnings.
Features
- Get paid two days early.
- Their products include Wisely Direct card and Wisely Pay card.
- No activation fee is required.
- Mobile application.
- Multiple cards upgrade is available.
5. FlexWage
FlexWage is yet another popular payroll card provider that makes it easy for employees to get their salary and commissions. FlexWage has consistently ranked at the top of a ranking table for providing the finest financial wellbeing to its consumers.
Features
- There are no activation fees.
- Mobile application is impeccable.
- Offer Zero Liability Policy.
- Funds are accessible at any time.
- Customer support.
6. Rapid! PayCard
Rapid! PayCard's payroll service has a number of features. One of the company's standout advantages is its 100% e-payroll solution for clients.
Your employees can choose from a variety of distribution alternatives, including e-wallet payouts, digital checks, and a variety of payroll cards.
Furthermore, it provides companies with fast payment and electronic payroll delivery at no cost, as well as a slew of other useful services.
Features
- There are no activation fees.
- E-wallet payouts are possible.
- Digital checks.
- Cashback rewards is quite useful.
- Liability protection to safeguard users against unauthorized transfer.
How to Transfer Money from a Payroll Card to Bank Account
Depending on your payroll card provider, transferring money from your payroll card to a bank account might be simple or complicated.
Unfortunately, there isn't a lot of information available about how to transfer funds from your payroll card to a bank account.
Some companies include it in their services, while others require you to contact your bank or payroll card provider.
Payroll cards, on the other hand, are the ideal solution for workers who do not have a bank account since it will let them receive direct deposits from their employers.
Once you receive your payment and want to make it more flexible, considering to transfer the funds to a bank account is one of the best options to consider.
While Payroll cards don't offer a direct way to transfer money to a bank account, it's better to speak with your bank officer or employer and inquire more about the process. It's worth noting that you might need to pay a fee to complete the transaction.
If speaking with a bank doesn't help, then you might want to consider the indirect ways to transfer money from Payroll card to bank account mentioned below.
1. Withdraw Money From ATM and Deposit to Your Bank Account
Payroll cards support ATM withdrawals from in-network banks and ATMs — meaning, you can withdraw money from your Payroll card from an ATM or participating bank freely and deposit the money into your bank account.
Modern ATMs nowadays, support deposits to bank account — which means you can withdraw the funds from your Payroll card and deposit them into your bank account at the same spot.
With that said, this method is the most straightforward and convenient indirect way to transfer money from a Payroll card to bank account.
This method is more like transferring money from an ATM card to bank account.
2. Add Your Payroll Card to PayPal
Adding your Payroll card to PayPal is one great way to dispense the cash for your transactions with PayPal and keep the cash you were to use for the transaction.
Payroll cards are more like prepaid debit cards, and PayPal allows users link prepaid cards to their PayPal account to start sending and receiving money. However, you will need to create a PayPal account and verify it to get started. Once your account is ready, you can add your card to your account and start carrying out transaction.
Ideally, you can also use the funds in your Payroll card to transfer PayPal balance to a friend or relative in exchange for cash after which you can deposit the proceeds into your bank account.
Also Read: How To Transfer Money From smiONE Card To My Bank Account
3. Buy and Sell Gift Cards
Another great way to transfer money from Payroll card to bank account is by buying gift cards with the card and selling the gift cards for cash instantly then, request to get paid through bank transfer. Gift cards work as virtual cards and can be used to complete purchases. On the other hand, you can transfer gift card balance to bank account.
You can even use the gift card to purchase an item and keep the cash you were to use for your transaction. You can also earn free gift cards and sell them for bitcoin instantly.
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Frequently Asked Questions
Can I transfer money from a paycard to my bank account?
While some paycards allow you to transfer money to your bank account, others, on the other hand, do not support transfers to bank account. In this case, you'll want to use indirect ways to transfer your funds.
How long does it take to transfer money from a pay card to a bank account?
If its a direct transfer, it should take between 3 to 5 business days. However, if the transfer is through an indirect method, it can take lesser time or more (depending on the method you use) for the funds to hit the bank account.
Final Thoughts
A payroll card is a prepaid card set up by an employer to pay the earnings or salaries of its employees. An employer sets up a payroll card with a bank or other financial institution to pay its employees.
You cannot directly transfer money from a Payroll card to bank account. You can however, contact your bank or Payroll card issuer to know if there is a way to move your money to your bank account. Some providers may even let you get paper checks or direct deposits.
On the other hand, you can use indirect methods to transfer funds from Payroll card to bank account. Though they might seam tricky, this article explains everything you should know.
References:
https://www.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401/
https://worldscholarshipforum.com/wealth/how-to-transfer-money-from-payroll-card-to-bank-account/
https://www.thegigcity.com/how-to-transfer-money-from-payroll-card-to-bank-account/