Pay Card Definition
A pay card is a prepaid card that an employer can use to pay their employees as an alternative to direct deposit or paper checks.
Employees can use pay cards like a debit card or they can withdraw their wages from it. One downside to pay cards is that an employee may be subject to numerous fees. Although pay cards are an alternative to direct deposit and paper checks, employers cannot offer pay cards as the only method to receive wages. Pay cards must also comply with Federal Reserve Regulation E.