4 Best Payroll Card Providers for Small Businesses
A payroll card is a prepaid card you can use to transfer your employees’ wages electronically every pay period, making paydays more convenient and cost-effective for you and your staff. Employees can use it as a debit card, to purchase goods, and to withdraw their pay using a preferred ATM or bank cashier. The best…
A payroll card is a prepaid card you can use to transfer your employees’ wages electronically every pay period, making paydays more convenient and cost-effective for you and your staff. Employees can use it as a debit card, to purchase goods, and to withdraw their pay using a preferred ATM or bank cashier. The best payroll card providers have programs that are simple to set up, give access to funds quickly, and have low withdrawal fees. Some pay cards even offer employees a range of benefits, such as cash back and discounts.
In this guide, we evaluated 10 payroll card providers and narrowed it down to our top four recommendations.
All the payroll pay card providers on our list offer free signup, implementation support, and mobile apps for iOS and Android devices. These pay cards are also Federal Deposit Insurance Corporation (FDIC)-insured through issuing banks and can be used to pay bills and receive salary payouts.
Skylight ONE (Netspend): Best Overall Payroll Card Provider
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Wisely by ADP: Best for Integrated Pay Card, Payroll, and Tax Solutions
FlexWage: Best for Small Restaurants & Retail Stores
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rapid! PayCard: Best for Fraud Prevention Tools
Methodology: How We Evaluated the Best Payroll Card Providers
We evaluated each system based on pricing (including fund transfer and ATM withdrawal fees) and general features (such as pay card capabilities). We also looked at ease of use, customer support, and user reviews. Click through the tabs below for our full evaluation criteria.
Methodology weights
Pricing 35%
General Features and Functionalities 35%
Ease of Use 30%
We determined if the payroll card providers offer free signup or if they have affordable subscription pricing. We also looked into additional fees that could be charged if an employee transfers funds or withdraws from an ATM.
We required each provider to have a lost card replacement system. We also confirmed if they are FDIC insured and if a mobile application is available for its cardholders. Card capabilities such as bill payment, including transfer and card balance, were also checked. Payroll cards with on-demand access and rewards like discounts and cashback or creating savings accounts were also given high ratings.
Aside from a smooth implementation, we also gave pay card providers plus points if they have 24/7 customer support. Additional points were given if the pay card system integrates well with the employer’s existing payroll system or bank. Points were also awarded for systems with positive user reviews.
Best Payroll Card Frequently Asked Questions (FAQs)
A payroll card is a prepaid card that an employer gives to an employee. Employers can electronically transfer wage payments to the payroll cards every pay cycle. Employees, on the other hand, can use it to withdraw their salaries from ATMs or make purchases.
Yes, you can. Depending on the payroll card provider, this can be done via direct deposits and depositing money through the provider’s partner shops that accept money transfers.
The activation process can vary depending on the paycard provider, but the most common option requires calling the paycard company to request activation.
Employers can get payroll cards for employees from reputable banks and paycard providers, like those on our list. Some payroll software providers also offer pay card options, such as ADP with its Wisely card.
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Bottom Line
Payroll cards are a better alternative to paper checks, especially when paying unbanked employees. They are cheaper, often costing nothing to implement, and save employees money by not charging them to pay fees to cash a paper check. Some payroll cards even provide a savings account and budgeting tools. However, employees should also be educated about the fees associated with the card’s use.
We found Skylight ONE (Netspend) to be the best overall payroll card service. Card activation and system implementation are free, plus it has some of the best benefits for employees.
Robie Ann Ferrer is a human resources professional with a decade of experience helping companies manage their workforce and optimize HR processes. Her background includes roles as an HR Specialist and HR Business Partner, where she handled various facets of HR, such as payroll, benefits administration, employee services, compensation management, and HR systems.
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