An unbanked employee might choose to use a payroll card over receiving a paper check primarily because payroll cards offer greater convenience, security, and cost savings. Payroll cards provide immediate access to wages without needing a bank account, avoid check-cashing fees, allow faster access to money, and function like debit cards for purchases and ATM withdrawals. Additionally, payroll cards reduce risks like loss or theft associated with paper checks, and can help employees better manage budgeting and pay bills automatically. This makes payroll cards a more efficient and practical payment method for unbanked employees compared to paper checks.
Key reasons unbanked employees choose payroll cards over paper checks:
- No bank account needed: Payroll cards do not require a bank account, enabling direct access to wages.
- Immediate access to funds: Money is loaded on payday directly to the card, eliminating check clearance delays.
- Avoid check-cashing fees: Using payroll cards eliminates costly fees charged by check-cashing services.
- Enhanced security: Payroll cards are PIN protected, reducing risks from lost, stolen, or damaged paper checks.
- Convenience: Cards can be used nationwide at ATMs, stores, and online, making spending easier and more flexible.
- Additional financial benefits: Options to set up bill payments, track spending, and sometimes earn rewards.
Thus, an unbanked employee benefits from faster, safer, and more cost- effective access to wages with a payroll card compared to paper checks, making payroll cards an attractive alternative.
