Why would an employee want to be paid with a paycard?

Author: Alice Gilman

There are several reasons:

  • Paycards are FDIC insured so, once the card is loaded, the employee's pay is protected.
  • The employee's liability is limited if the paycard is stolen.
  • The employee can usually perform basic banking transactions for free, such as withdrawing cash at ATMs or bank branches, online bill paying and checking his or her account balance.
  • Some paycards have additional features, such as a no-frills checking or savings account and customizable alerts.