In recent years, there’s been an increasing demand for instant access to funds driven by changing consumer expectations, partly fueled by the rapidly growing gig economy. Today, many workers would prefer to be paid out as soon as their tasks are completed. This expectation is at odds with traditional payroll cycles.

Visa and Payactiv have partnered to create a solution to this problem: Visa payroll cards, which allow companies to issue instant payments of earned wages¹. Let’s explore Visa payroll cards and the many benefits they offer businesses like yours.

What Is a Visa Payroll Card?

A Visa payroll card allows employees to access wages they’ve already earned outside the traditional weekly or two-week payroll cycle. This gives employees additional choice and flexibility when managing their financial well-being.

How Visa Payroll Cards Work

Employers usually create and implement a Visa payroll card (also known as a paycard) program with a third-party provider. They enroll employees who choose this option, and the provider issues the payroll cards.

Instead of receiving a paper check, employees can use Visa paycards to obtain cash and pay their monthly expenses up to the limit of their wages. Paycards function like debit cards when making purchases, paying bills, or withdrawing cash, and they allow employees to use only the funds loaded onto them.

Workers can access funds from their payroll cards nearly instantaneously. Funds can be loaded onto the same Visa payroll card with each employee’s pay cycle, so each worker needs only one card during their employment lifecycle.

Benefits of Visa Payroll Cards for Businesses

Payroll Administration Cost Savings

Visa® payroll cards can help companies reduce their payroll costs because they avoid the expense of issuing paper checks, including the cost of re-issuing lost checks and postage for mailing. While these savings may not be dramatic, they do add up over time.

While expenditures related to setting up a Visa payroll card system differ among third-party providers, upfront fees are typically minimal.

Improved Employee Satisfaction

Visa payroll cards are a win-win solution for employees and employers alike. With on-demand access to earned wages and the ability to receive them in real-time through their Visa payroll card, employees can unlock the benefits that real-time access to funds provides, while companies enjoy a competitive advantage in attracting and engaging employees.

Showing a willingness to offer payroll flexibility helps your business foster good relationships with your team members, which boosts employee loyalty.

Enhanced Security and Fraud Prevention

A payroll card program is more secure than paper cheques, given that cheques can be lost in the mail and duplicate cheques can be cashed fraudulently.

Visa payroll cards also require a PIN. This added layer of security helps ensure that access to employee funds can’t be easily compromised.

Better Financial Controls

Visa payroll cards enable precise budget management by allowing companies to allocate specific amounts for expenditures.

This helps prevent overspending and supports better financial planning.

Benefits of Visa Payroll Cards for Employees

Safe and Secure

With Visa payroll cards, employees can easily keep track of every deposit and transaction via an app. They can also set up notifications and stay safe with a one-click lock/unlock payroll card option. Cards are FDIC-insured and include Visa’s Zero Liability protection.

Accessibility and Ease of Use

Payroll Visa cards allow employees to get paid up to two days early with direct deposit and receive reimbursements and bonuses in minutes. Cards can be used everywhere Visa debit cards are accepted, and employees can make surcharge-free cash withdrawals at 37,000+ MoneyPass® ATMs. There are no minimum balance requirements and no monthly or annual fees.

Financial Relief, Inclusion, and Education

Because Visa payroll cards allow employees to access a portion of their earned wages before payday, it reduces the financial stress of dealing with unexpected expenses and eliminates the need for workers to resort to high-interest payday loans or credit card debt.

Visa payroll cards also offer a solution for those who don’t have access to a traditional checking account.

Visa payroll cards issued via Payactiv include essential financial tools and resources, such as:

• A feature-rich mobile app that enables cardholders to track their spending and access to earned wages.
• A rich suite of financial support services for users, including saving and budgeting tools. Plus, users get access to exclusive marketplace discounts.

Implementing a Payroll Card Program: Steps to Success

If you’re considering implementing a payroll card program, the first step is to define your objectives. Clearly outline what you want to achieve with your program, whether it’s streamlining payroll processes or enhancing employee loyalty and financial inclusion. Understanding your goals will guide the structure of your program.

1. Select the Right Provider

It’s vital to choose a card provider that offers the features and services that align with your business needs. Factors to consider include fee structures, customization options, and the range of functionalities available. Also, ensure your provider is reputable and compliant with financial and payroll regulations.

2. Integrate with Your Payroll System

For a seamless operation, ensure that the prepaid card program integrates with your existing payroll system. This may involve software integration so you can track transactions, manage card loads, and analyze usage patterns.

3. Conduct a Pilot Program

Before moving ahead with a full rollout, launch a pilot program with a small user group. This will help you pinpoint any potential issues and make necessary adjustments. Gather formal and informal feedback to understand user experiences and satisfaction levels.

4. Train Your Employees

Educate your workforce about how the Visa payroll card program works and its benefits. Comprehensive manager/supervisor training will ensure everyone is on board and knows how to effectively manage and promote the program.

5. Monitor and Adjust

Once your Visa payroll card program is live, continuously monitor its performance and employee satisfaction. Be prepared to make adjustments to improve the program, such as enhancing user functionalities and updating security features.

About Payactiv and the Payactiv Visa Prepaid Card

Payactiv’s mission is to help millions of workers build lasting financial resilience. By offering financial security tools and access to liquidity, Payactiv is empowering people to take control of their financial future and navigate the rising cost of living with peace of mind and confidence. In line with its mission to be a social impact organization, Payactiv doesn’t charge cardholders any monthly fees.

With the Payactiv Visa Prepaid Card, employers can enjoy better retention, recruitment, and engagement, and employees can get on a path of holistic financial wellness with timely access to their earned but unpaid wages.

Learn more about Payactiv’s services here.

Central Bank of Kansas City does not administer, nor is liable for earned wage access. The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll free at 1-877-747-5862, 24 hours a day, 7 days a week. 

All content provided on payactiv.com/blog/ is for informational purposes only. Payactiv makes no representations as to the accuracy or completeness of any information on this site or found by following any link from this site. Payactiv will not be liable for any errors or omissions in this information nor for the availability of this information. Payactiv will not be liable for any losses, injuries, or damages from the display or use of this information.