In today’s world, employees expect to receive their wages quickly and conveniently. Traditional payroll methods—like ACH, paper checks, or cash—often involve delays that can leave workers waiting on their hard-earned money. Enter: the paycard.

In this blog, we’ll dive into what paycards are, how they work, and why they’re becoming a popular choice for companies that want to offer same-day payroll. Let’s explore how paycards can offer a fast and efficient alternative to traditional payroll methods—and how they can benefit both your business and the people who power it. 

What Is a Paycard?

Paycards are prepaid cards or debit cards that employers can use to distribute wages, tips, and other earnings to employees. Instead of waiting for a check to be issued, employees receive their wages directly onto their paycard, which can then be used for purchases.

How Do Branch’s Paycards Work?

With Branch Cards, employers can hand out a paycard to each employee right when they start. Your employees can sign up to have their wages deposited directly onto the card each payday. You may also choose to send tips, mileage reimbursements, or other earnings to employee cards at whatever cadence you prefer.

Unlike some paycards, Branch Cards are linked to an underlying bank account. Employees can then use their card just like they would any other debit card: for point-of-sale purchases at stores, to pay for things online, or get cash through ATM withdrawals. They can use their Branch Cards for everything from bill payments to everyday shopping.

How Does Same-Day Payroll Work?

Some paycards come with the option to push funds to workers’ accounts as often as you like. With Branch’s comprehensive payments platform, we can work with you to set up the pay cadence that works best for your organization; as soon as same-day or after each shift is complete. You can send wages, tips, and any other payments to workers accounts as often as you like.  

What Are the Benefits of Paycards for Employees?

• Inclusive. Some employees may be unbanked and without access to a traditional bank account, making paycards a great way to pay your entire staff in one seamless, digital-first way. 
• Saves time. Save your employees time by eliminating the need for them to go to the bank to cash a check—paycards allow them access to their funds right away, without the hassle. 
• Cost savings. If you go with the right paycard, you should find plenty of fee-free options for employees to access their funds, and even transfer to external accounts. 

Offer a convenient, fee-free way for employees to access their hard-earned money right away. Learn more about Branch’s paycards for employees here. 

How Do ATM Withdrawals Work With Paycards?

ATM withdrawals are simple with a paycard. You can take out cash when you need it, though some ATMs might charge small fees. Some paycard providers partner with specific ATM networks to offer free withdrawals. (For example, Branch offers 8 fee-free transactions per month within the AllPoint Network). 

What Are the Business Benefits of Paycards?

Paycards can provide your business with several key advantages throughout the payroll process. 

Speed & efficiency

• Same-day payment processing: Employee wages are transferred immediately on payday.
• No waiting for checks: Eliminate the delays of paper check printing and distribution time.
• Fast access to funds: Employees can be paid as soon as work is completed, helping streamline the entire payments process

Time & cost savings

• Lower processing costs: Eliminate expensive check printing and reduce bank transaction and maintenance fees.
• Easy integrations. Free up HR team resources when you use a solution like Branch that integrates with your existing payroll vendor. Branch integrates with many payroll software platforms.
• Ditch payroll headaches. Say goodbye to waiting for specific ACH clearing windows, making last-minute trips to the bank, or having to re-issue or overnight paper checks. With Branch, you can immediately send payments to any worker, day or night, weekends and holidays included.
• Happy employees: Support workers without bank accounts and improve wage access.

Scale & grow faster

• Eliminate unnecessary admin hassle which can free up your team to focus on business growth
• Build a talent pool of happy employees who may be more likely to stick around, be productive, and deliver great work.
• Fast, digital payments anywhere in the U.S. With digital payments sent to paycards, it’s easier to pay remote workers or workers who are employed at other locations across the U.S.

Start Using Branch Cards for Quick Payroll Access

Branch offers a modern paycard with a comprehensive digital banking experience, allowing you to go beyond the basics—at no cost—and offer more to your hardworking team.. 

With Branch, your employees get a free Mastercard debit card* on their first day and a free bank account, all in one package. They can spend, send, or save their money however they like—and you get to save time and money, streamline processes, and boost morale in the process. Complete with cashback rewards, financial wellness tools, and personalized spending insights, our paycard goes above and beyond—without the need for pre-funding or unnecessary fees. 

Contact Branch today to learn more about our modern paycard solution.
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_{*Branch is not a bank. Banking services provided by Evolve Bank & Trust, Member FDIC. FDIC insurance only applies for eligible accounts should the bank holding your funds fail. The Branch Mastercard Debit Card is issued by Evolve Bank & Trust pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted.}

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