⏰ Est. reading time: 3 mins
💡 What you'll learn:
- What differentiates a paycard from other payment methods
- How Branch Cards work
- The benefits of paycards for employees & businesses
Key Takeaway
Paycards enable instant wage distribution and eliminate payroll delays. Employees get immediate access to earnings and business costs are reduced. In our experience, companies using paycards have better employee satisfaction and streamlined payroll operations.
Quick Navigation
- What Is a Paycard?
- How Branch Cards Work
- Same-Day Payroll Process
- Employee Benefits
- Business Benefits
- ATM Withdrawals
- Frequently Asked Questions
Key Terms
In today's world, employees expect to receive their wages quickly and conveniently. There are often delays with traditional payroll methods like ACH, paper checks, or cash. That leaves workers waiting for 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 are a fast, 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.
Why Paycards Matter
Traditional payroll methods create unnecessary delays. Paycards eliminate the waiting period between work completion and wage access, providing immediate financial relief for workers.
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.
Branch Card Setup Process
1. Employee Enrollment
New employees receive a Branch Card on their first day and can immediately begin receiving wages.
2. Wage Distribution
Employers can send wages, cashless tips, and reimbursements at any frequency that works for the business.
3. Immediate Access
Employees can use their card for purchases, online payments, ATM withdrawals, and bill payments.
Unlike some paycards, Branch Cards are linked to a bank account. Employees can use their card just like any other debit card: for point-of-sale purchases at stores, to pay for things online, or get cash through ATM withdrawals.
How Does Same-Day Payroll Work?
Some paycards have the option to push funds to workers' accounts as often as you like. With Branch's comprehensive payment platform, you to set up the pay cadence that works best for your business—as soon as same-day or after each shift is complete. This provides unprecedented flexibility for both employers and employees.
Traditional Payroll vs. Same-Day Paycard Payroll
What Are the Benefits of Paycards for Employees?
🏦 Inclusive Financial Access
Some employees may be unbanked and don't have access to a traditional bank account, so paycards are a great way to pay your entire staff in one seamless, digital-first way.
- No bank account required
- Immediate financial inclusion
- Access to digital banking services
⏰ Time Savings
Save your employees time by eliminating the need for them to go to the bank to cash a check. Paycards give them access to their funds right away, without the hassle.
- No bank visits needed
- Instant access to earnings
- 24/7 fund availability
💰 Cost Savings
The right paycard should have plenty of fee-free options for employees to access their funds and even transfer to external accounts.
- Fee-free fund access
- Free external transfers
- No check cashing fees
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.
Branch ATM Network Benefits
Branch offers eight fee-free transactions per month within the AllPoint Network. This provides extensive access to cash without additional costs.
What Are the Business Benefits of Paycards?
Paycards have 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.
💵 Time & Cost Savings
- Lower processing costs: Eliminate expensive check printing and reduce bank transaction fees.
- Easy integrations: Branch integrates with many payroll software platforms.
- Ditch payroll headaches: No more ACH clearing windows or overnight check deliveries.
📈 Scale & Growth
- Eliminate admin hassle: Free up your team to focus on business growth.
- Build talent retention: Happy employees are more likely to stay and be productive.
- Fast, digital payments anywhere: Easier to pay remote workers across the U.S.
Frequently Asked Questions About Paycards
What is a paycard?
Paycards are prepaid cards or debit cards that employers use to distribute wages, tips, and other earnings to employees instantly, eliminating delays from traditional payroll methods.
How does same-day payroll work with paycards?
Same-day payroll allows employers to push funds to workers' paycard accounts immediately after work completion or at any preferred cadence, providing instant access to earnings.
Are paycards good for unbanked employees?
Yes, paycards are ideal for unbanked employees because they provide access to digital banking services without requiring a traditional bank account.
What are the business benefits of using paycards?
Paycards offer businesses speed and efficiency, lower processing costs, eliminate check printing, reduce admin hassle, and improve employee satisfaction.
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 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.
Unlock a Happier, More Productive Workforce
