It Pays to Know About Payroll Cards: A Guide for Employers

It’s true that businesses have more options than ever to pay their staff from direct deposits, cryptocurrency transfers, PayPal or using a payroll card – the world has moved away from using traditional paper…

payroll on a calculator

It’s true that businesses have more options than ever to pay their staff from direct deposits, cryptocurrency transfers, PayPal or using a payroll card – the world has moved away from using traditional paper cheques or physical cash.

Whether you’re interested in moving toward total electronic payments, making payroll better for employees or streamlining your processes, our job is to make yours easier, so let’s discuss some of the benefits that payroll cards can offer.

What are Employee Payroll Cards?

A payroll card is essentially a debit card where, as an employer, you can load your employee’s wages or salary onto them. They offer a safe alternative to cash-in-hand payments or cheques and give you the ability to hire employees who may not be able to gain access to a bank account in the UK.

A payroll card is usually attached to a current account, which gives employees most of the benefits that they would get with a UK bank account – minus the credit facility. You can automatically transfer money to a payroll card by standing order or bank transfer.

Let’s discuss how a payroll card could assist your business activities:

The Benefits of Using Payroll Cards for Your Employees

When an employee doesn’t have a bank account within the UK, wages would need to be paid in either cash or cheque which poses several risks. This is where a payroll card comes in handy.

Cost-Effective and Simple to Set Up

By using payroll cards, it will save your business time and money as you don’t need to worry about issuing cheques or making monthly trips to the bank. Additionally, your employee will receive a reliable payment to their card without having to come into the office to collect their paycheck and take it to the bank or post office.

Most payroll cards can be set up quickly and easily, with most of the work being done for you by the payroll card providers in a matter of minutes. From then on, if you customers have an issue that they need support with then can go directly to the card provider’s customer service team, so you don’t need to be involved in your employee’s finances.

Money Management for Your Employees

According to This is MONEY, 55% of UK adults are worried about their finances. Help to remove any money-related stress from your employees by issuing a payroll card.

There is no credit or overdraft facility so it’s impossible for employees to go into debt when using a payroll card and certain cards are paired with a banking facility where your employees can manage their money online and create separate ‘savings’ pots to help budget their living expenses.

Protect your Money by Protecting your Employees

Payroll cards usually have security measures in place that help to protect your employee’s money. PIN number and EMV chips help to make transactions safer and prevent any fraudulent use. Payroll cards that are paired with a current account also benefit from additional security when it comes to mobile and online banking to protect account holder’s money and personal details.

In the event of a payroll card being lost or stolen, your employees can simply report this loss and receive a new card loaded with the same balance. This saves your employees the risk of having to carry around cash, which they would not be able to be replaced if lost, resulting in a potentially stressed and worried worker.

Businessman hand writing and signing white empty bank cheque to pay employees with calculator on desk. Payment by cheque, payroll concept

Payroll Card FAQ’s

How Similar is a Payroll Card to a Debit Card?

Very similar! Most payroll cards have the same features and functions of a debit card, minus the ability to get any form of credit such as an overdraft. Additionally, payroll cards also fall into the prepaid card category. Employees can use their card to withdraw cash from an ATM and shop in-store and online using a payroll card – sometimes employees can get cashback on purchases depending on the card provider.

Where can Employees use Payroll Cards?

Payroll cards are usually issued by major debit card companies such as Mastercard or Visa or payment processors and can be used in the same places that a debit card can be accepted, both online and in-store. Additionally, your employees can also withdraw cash from an ATM or request cashback in-store.

Can an Employee Deposit Money onto a Payroll Card?

In most cases, employees can also deposit money onto their card through a variety of options such as:

  • Cash: Employees can deposit any cash onto their card by visiting a PayPoint location or the Post Office.
  • Bank Transfer: All payroll cards come with a sort code and account number, which allows others to send money directly to your employee’s account.

However, it is worth checking with the payroll card provider on the services that they can offer your employees.

Is a Payroll Card Better Than a Direct Deposit?

This heavily depends on your employee’s situation and preferences. If most of your employees do not have a bank account, then offering a payroll card might be a cheaper and efficient option for you. However, it really does depend on the provider if you’re looking to save money on processing payroll as some can charge you money for their service. 

Man using a payroll card to pay for bills online using his laptop

Using Suits Me® as your Payroll Card Provider

Becoming a Suits Me® partner is completely free, with no hidden fees and costs. If you choose to partner with us, you can create a current account for your employees in seconds and their card will be sent out to their registered address within 3-5 days.

We also have an employee portal, where you’ll be able to bulk upload the details of your employees and receive their sort code and account number in minutes which will save you time and effort in the long run.

Your employees will be in good hands with us as we believe in fair banking for everyone regardless of their background or financial circumstances. We provide all of us account holders with a contactless debit card paired with a safe and secure current account, a free mobile banking app.

We also offer our account holders a little extra! We’ve partnered with large retailers to create our successful (and growing!) cashback rewards programme which every account holder is entitled too and we also have a multi-lingual customer care team if English isn’t the first language for any of your employees.

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