Payroll Cards
There is a solution for some employees might not have excess to back accounts. In the past, when they received their paycheck, they had to cash it by their nearest currency exchange and ended up paying 5-10% to cash their check. Now payroll companies, can have the direct deposit loaded onto a debit card. In this way, employees don't have to give up a portion of their paycheck. Companies can save money by not printing checks and not have to worry about check fraud. So in a sense, a payroll card can be more
convient compared to a cashiers check.
Some atm's may charge a fee for payroll cards.
The account on the payroll card can be in the employees name. In this system, the account holds the payroll funds for all employees using the payroll card.
Most ownership of payroll cards are by individually owned dda. DDA stands for demand deposit accounts and they are owned by the employee. Payroll Cards are very
flexible, allows the employee to use the card for paying bills, and the accounts are portable. These payroll cards are FDIC insured.
