Can an employee's pay be loaded onto his or her personal debit card like a paycard?

Author: Alice Gilman

No. While all paycards are debit cards, not all debit cards are paycards. An employee's personal debit card is not a paycard. Personal debit cards are known as general purpose cards and the rules governing them are different than the rules for paycards, especially concerning fees.

For example, employees who are paid by paycard must be able to access their entire net pay at least once per pay period without paying fees. A similar prohibition does not apply to general purpose cards.

So, while an employer may direct deposit an employees' wages onto a personal debit card, the employee will be charged all the customary fees and the employer may have unwittingly incurred liability to the employee for failing to pay all wages due.