If my employer offers me a payroll card, do I have to accept it?

Answer: Your employer can’t require you to receive your wages on a payroll card. Your employer has to offer you at least one other alternative.

For example, some employers will give you a choice between direct deposit into your bank account, direct deposit to a payroll card, and a paper check. Others may only give you a choice between the first two of these options. Depending on the state you are in, your state’s laws may also require that your employer make additional options available. 

Before you agree to receive your wages on a payroll card, you should make sure you have certain information about the card. This includes information about certain fees you may be charged for using the card, such as for ATM withdrawals and purchases. Your employer or the card issuer also must provide you with the card’s terms and conditions. 

TIP:

You should be careful to check all the fees that may come with your payroll card.  Some cards charge fees for receiving paper statements, calling customer service and checking account balances.  Some cards charge a fee if you do not use your card.  This is called an inactivity fee.

Before you agree to receive your wages on a payroll card, it’s a good idea to make sure you understand the terms and fees associated with the card so that you can compare it to the terms and fees of your other option(s). If you start using a payroll card and you don’t like it, you can ask your employer to switch you to another option.

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