Pay It Up: What Are the Pros and Cons of a Payroll Card?
There are over 14 million “unbanked” people in the US.
With this vast number of people unable to access banking services, a Payroll Card offers them relief.
With the likes of payroll paycards, Comdata payroll card, and more, the “unbanked” can access almost all services that come with a bank account without needing one.
As a company or an individual, you might wonder if using payroll paycards might be beneficial.
Read along as we discuss the pros and cons of a Payroll Card.
Payroll Cards Pros
Whether an employer or employee, payroll cards have benefits for you. Here are the top advantages of using payroll cards:
Payroll cards open a world of convenience to the cardholder.
Many payroll debit cards can be easily set up online and from the comfort of your home or office.
With a payroll card, there’s no need to go to the bank to process paychecks. Further, still, employees don’t have to worry about popping into the office to pick their paychecks. With the convenience of ATMs, payroll cardholders aren’t left behind as they can make withdrawals at any time.
Also, payroll cards allow holders to make online transactions in this age of e-commerce.
With a payroll debit card, you access a high level of security.
Walking around with cash has its risks as one can get mugged, and the money is as good as gone. A payroll card requires a pin and a signature to access the money, and you’re the only one with the pin. So, even if your payroll card is lost or stolen, your money is safe.
Stay On Top of Your Finances With Payroll Paycards
With payroll cards, the risk of you falling into debt or financial liabilities are minimal. This is because they don’t operate like credit cards.
Payroll paycards don’t offer overdraft, and as such, you only spend what you have. This makes it easier to manage finances and avoid paying hefty interest rates that apply with an overdraft.
Payroll Cards Cons
Despite many advantages that make a case for payroll cards, there are some cons. Here are some disadvantages associated with payroll cards:
Payroll Cards Incur More Fees
With a payroll, expect to pay more fees on transactions than another payment system like checks, debits, and credit cards.
Other expenses like account maintenance will add to your pay fees if your employer doesn’t cover them.
You should check the fine prints to understand the fees that apply. This way, you won’t be surprised when you see you’re charged when you enquire about your balance.
Recovering Lost Funds Isn’t Easy
If you lose money through fraud, the recovery process isn’t easy. Depending on the card issuer, reporting lost or stolen cards should happen immediately to prevent incurring financial losses. If you failed to do so on time, recovering subsequently lost funds could be challenging for you.
Limited Cash Withdrawals
It can be tricky to access large amounts of money with a payroll card as some institutions and ATMs limit the amount withdrawn.
This may be an inconvenience to many people.
Make an Informed Choice and Choose a Payroll Card
Now that you’re fully aware of the pros and cons of a payroll card, you can make an informed choice. This way, you’ll be in complete control of your finances.
For more insightful articles on a range of topics, be sure to check out more of our blog.