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Gemini A payroll card (also called a paycard) is a prepaid card that an employer loads with an employee’s wages each payday. The employee uses the balance to make purchases and, depending on the program, withdraw cash or move money to a bank account, without needing a checking account. Employers cannot make a payroll card the only way to get paid, and fees depend on the card’s terms and state law (CFPB).
This guide explains how payroll cards work, the fees to check, pros and cons for employers and employees, how they compare with direct deposit and paper checks, and the rules employers must follow.
What Is a Payroll Card?
A payroll card is a prepaid card account set up through an employer to receive wages. Instead of sending pay to an employee’s own bank account or handing over a paper check, the employer sends net pay to the card account. The CFPB describes it as a card an employer arranges with a bank or other financial institution and loads with the employee’s wages.
Three parties are usually involved:
- The issuing bank holds the funds and issues the card.
- The program manager or payroll provider handles enrollment, loading, the app and customer support.
- The card network (often Visa or Mastercard) lets the card work at stores, online and at ATMs.
A payroll card is a prepaid debit card, not a credit card. Employees spend wages they have already earned, so there is no credit line or interest. It is also different from a general-purpose prepaid card an employee buys at a store, because it is tied to the employer’s payroll and covered by specific Regulation E payroll card rules.
How Does a Payroll Card Work?
Each program works a little differently, but most follow these steps:
- The employer picks a program. The employer signs up through its payroll provider or a bank, gives employees the required fee disclosures and offers at least one other way to be paid.
- The employee chooses the card. Employees who opt in receive a card, often personalized, and activate it.
- Payroll runs as usual. The employer calculates gross pay, taxes and deductions, then sends net pay to the card account instead of a bank account.
- Wages are loaded on payday. Funds become available on the employer’s pay schedule, under the card program’s terms.
- The employee uses the balance. Depending on the card, employees can pay at stores and online, pay bills, withdraw cash at ATMs or bank tellers, and transfer money to a bank account. They can check the balance by app, website or phone.
A payroll card doesn’t replace the pay stub. Employers still owe employees an earnings statement where state law requires one. See how to read a payroll check stub for what it should include.
Payroll Card Fees: What to Check
There is no standard payroll card fee schedule. Fees depend on the agreement between the employer and the card provider, and the CFPB says the card’s short-form and long-form disclosures must list them. Fees can apply to:
- Out-of-network ATM withdrawals and balance inquiries (the ATM owner may add its own surcharge)
- Transfers to a bank account
- Declined transactions
- Paper statements
- Inactivity after a period without use
- Replacing a lost or stolen card, especially with expedited shipping
Many programs don’t charge for in-network ATM withdrawals, store purchases or online balance checks. Several states go further and require at least one way per pay period to get the full net wages without a fee. Before choosing a program, employers should ask for the full fee schedule in writing and confirm employees can reach every dollar of pay without a fee. Regulators do act on this: in 2025, New York’s Attorney General settled with Netspend over fees it called illegal on payroll cards and other products.
Pros and Cons of Payroll Cards
For employers
- Pros: pays employees who don’t have bank accounts electronically; fewer paper checks to print, deliver, void and reissue; fewer lost or stolen paychecks.
- Cons: setup or program costs with some providers; disclosure, consent and state-law duties; employee support questions; savings are not automatic.
For employees
- Pros: pay on payday without a bank account; no check-cashing fees; card works for purchases, bills and online shopping; a lost card can be replaced without losing the balance under the program’s rules.
- Cons: fees for some ATM, transfer, inactivity and replacement transactions; limits on cash withdrawals; access depends on the card network and the provider’s support.
Payroll Card vs. Direct Deposit vs. Paper Check
| Payroll card | Direct deposit | Paper payroll check | |
|---|---|---|---|
| Bank account needed? | No | Yes, the employee’s own account | No, but cashing without an account can cost money |
| Where pay goes | Prepaid card account set up through the employer | The account the employee chooses | A check handed or mailed to the employee |
| How employees get cash | ATM, bank teller or transfer, under card terms | Their bank’s ATMs, branches and app | Deposit at a bank or cash at a check casher |
| Fees to watch | Card fees in the disclosures (ATM, transfer, inactivity, replacement) | The employee’s own bank fees | Check stock and printing, delivery, stop-payment, check-cashing fees |
| Lost or stolen | Report it to the card provider; the card is replaced | Nothing to lose in the mail | Stop payment and reissue |
| Who it suits | Employees without a bank account who want electronic pay | Employees with a bank account | Employees who prefer paper or can’t use electronic options |
Direct deposit is still the most common choice. In PayrollOrg’s 2025 Getting Paid in America survey, 92.65% of respondents said they are paid by direct deposit, 3.30% by paper check and 0.58% by payroll card. Payroll cards matter most for workers without a bank account: the FDIC’s 2023 survey found 4.2% of U.S. households, about 5.6 million, were unbanked.
Learn more about what a payroll check is or see every way to pay employees.
Can an Employer Require a Payroll Card?
No, not as the only option. The CFPB says employees cannot be required to accept a payroll card and must be offered at least one other way to receive wages. Regulation E also bars employers from requiring an account at a particular bank as a condition of employment. Under the FLSA, wages must be paid finally and unconditionally, so fees that push pay below minimum wage can create problems.
States add their own rules. A few examples:
| State | Key payroll card rules |
|---|---|
| New York | Written consent and advance notice required. Employees must be able to withdraw full wages without a fee, including at a nearby ATM. Employees who don’t consent are paid by check or cash. |
| Illinois | Written or electronic consent, and another payment method must be offered. Full net wages must be accessible without a fee at least once per pay period, and some fees are prohibited. |
| Pennsylvania | A payroll card can’t be a condition of employment. Employers must disclose all payment options and fees before the employee signs up, and employees can switch to direct deposit or a check. |
| Texas | Employers may use a payroll card plan with advance written notice, a fee list and a form to request another payment method. If an employee asks, the employer must switch within the time the law sets. |
| Nevada | Written consent, clear fee disclosure and at least one transaction per pay period without a fee. |
| North Carolina | The state labor department says wages must be withdrawable in full on payday with one transaction at no charge. |
This isn’t a full 50-state list. Check the rules in each state where your employees work before you offer payroll cards.
Payroll Card vs. Paying Payroll by Credit Card
The names sound alike, but the money moves in opposite directions:
- A payroll card is how an employee receives wages.
- Paying payroll by credit card is how an employer funds payroll. The business charges the payroll amount to its own business credit card, and the funds go to its bank account or payroll provider. Employees are still paid the usual way. See what payroll credit means for the other uses of the term.
Zil Money doesn’t issue payroll cards, but it helps employers pay and fund payroll in other ways:
- Direct deposit: choose ACH / Direct Deposit on Send Payment to pay employees’ bank accounts.
- Payroll checks: design checks with stubs, print them on blank stock with any standard printer, email them as printable checks, or have Zil Money print and mail them.
- Payroll by credit card: pay the payroll amount with a business credit card for a 2.9% fee. Funds are transferred within 1 to 3 business days, so start at least three days before payday. Your payroll provider still runs payroll and taxes; Zil Money doesn’t run payroll, file taxes or create W-2s.
How to Offer Payroll Cards: Employer Checklist
- Check the payroll card rules in every state where your employees work.
- Ask your payroll provider which card programs it supports, and get the issuing bank’s name.
- Get the full fee schedule and the short-form disclosure in writing, and confirm employees can reach their full net pay without a fee.
- Ask about setup, per-card and support costs for your business.
- Offer at least one other payment option, collect consent where required, and keep records.
- Keep giving pay stubs, and explain how employees can check balances, report a lost card and switch methods.
- Plan what happens to a card balance when an employee leaves.
Frequently Asked Questions
Is a payroll card a credit card?
No. A payroll card is a prepaid card that holds wages your employer has already paid you. You spend your own money, not borrowed money, so there is no credit line, interest or credit check. Many payroll cards carry a Visa or Mastercard logo, which only means they are accepted on that network.
Do employees need a bank account to use a payroll card?
No. That is the main reason payroll cards exist. Wages are loaded to a card account set up through the employer’s program, so an employee without a checking account can still be paid electronically. Employees who have a bank account can usually ask for direct deposit instead.
Can you withdraw cash from a payroll card?
Usually, yes. Most payroll cards allow ATM withdrawals and some allow cash at a bank teller. Fees depend on the card: in-network ATM withdrawals often carry no card fee, while out-of-network ATMs may charge both a card fee and an ATM operator surcharge. Several states require at least one way to withdraw your full wages each pay period without a fee.
Can my employer make me use a payroll card?
Not as your only option. The CFPB says employees cannot be required to accept wages on a payroll card and must be offered at least one other way to be paid, such as direct deposit or a paper check. Some states add written consent, opt-out and fee rules.
Can I switch from a payroll card to direct deposit?
Usually, yes. Ask your employer’s payroll or HR team for a direct deposit form and give them your bank account and routing numbers. Some states, such as Pennsylvania and Texas, spell out the employee’s right to switch. Before the change takes effect, move any remaining card balance to your bank account and note any transfer fee in the card’s disclosures.
Is a payroll card the same as earned wage access?
No. A payroll card delivers wages on your regular payday. Earned wage access (EWA) is a separate service that lets workers reach part of their earned pay before payday, often for a fee. Some payroll card providers also offer EWA, so read which service a fee applies to.
Processing and delivery times are estimates and may vary based on financial institution processing schedules, payment method, and recipient bank participation. Timeframes are not guaranteed.
This content is for general information only and is not legal or tax advice. Payroll card rules vary by state and change often, so check with your state labor department or a qualified advisor.