Payroll Cards Are On The Rise In The US

Jul 29, 2016

Americans prefer payroll cards to paper checks because the former help employers and employees save time and money. Payroll cards allow employers to just electronically deposit funds into a card.

Why Do Americans Prefer Payroll Cards?

More and more Americans are turning to payroll cards. In 2014, 6 million US employees received their wages using payroll cards. By 2019, this number is going to double. Payroll cards are the preferred choice for about 68 million Americans. These are people who are unbanked/underbanked, and may not possess a checking account so to be able to directly deposit wages to it.

According to Brad Fauss, President and CEO of the Network Branded Prepaid Card Association (NBPCA), payroll cards enable employers to serve their employees better and provide more efficiency for their business.

Business owners interested in opening a high risk merchant account for their business should consider turning to With eMerchantBroker, you can enjoy the lowest possible rates and the best merchant account services for your business. Voted the #1 high risk payment processor in the US, EMB offers exceptional fraud protection and prevention services.

Payroll Card Benefits for Employees:

Payroll cards help employees:

  • Access Wages Immediately

Payroll cards allow for immediate access to your wages. No paper check is required and you don’t have to carry large sums of cash. Moreover, at least once per pay period, payroll cardholders can access their full wages without paying any fees.

  • Manage Money

Many prepaid cards, such as payroll cards, come with built-in features that enable users to manage funds. This means you can use budgeting tools and have online/mobile access to keep you funds under control.

  • Protect Wages

Thanks to the safeguards of Regulation E protection and FDIC insurance, payroll cards ensure your funds will be protected in case the card is compromised, lost, or stolen.

  • Save Money

Employees can save $150-$200 annually if they choose payroll cards instead of a check cashing service or a basic checking account.

  • Use Money on the Spot

As soon as your wages are disbursed to a payroll card, you can immediately use them. You

mustn’t necessarily be in the office to collect your checks. Also, you aren’t obliged to wait to cash a check and pay bills or make electronic payments spending your time and money.

  • Use Payroll Cards Almost Everywhere

You mustn’t necessarily stop at the ATM before paying your bills or do some shopping. You can use your payroll card wherever you use your debit cards, including online stores.

Payroll Card Benefits for Business Owners

Payroll cards help employers:

  • Reduce Payroll Processing Costs

Payroll cards help businesses save up to 65% in administrative costs. This is thanks to simplified payroll process, reduced time to manage payroll, decreased paperwork, and other benefits.

  • Reduce Check Fraud

Depositing funds directly into your employee’s payroll card account mitigates that risk of falling victim to check fraud.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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