Payroll card: getting paid without a bank account
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Key takeaways
A payroll card is a prepaid card that employers use to pay workers who don’t have a bank account.
An employer cannot require a worker to receive wages only on a payroll card without offering another option.
Payroll cards are generally covered by the same federal prepaid protections as other prepaid accounts.
Sending money internationally from a payroll card generally works the same way as from any other prepaid card, subject to its specific terms.
Understanding any fees tied to a payroll card, including for withdrawals, helps in keeping more of what’s earned available to send home.
A payroll card is a prepaid card that employers use to pay workers who don’t have a bank account. Here’s how it works, and what it means for sending money home from a payroll card.
What is a payroll card?
A payroll card is a type of prepaid card an employer arranges to pay wages, typically used by workers who don’t have their own bank account for direct deposit. According to the CFPB’s guidance on prepaid card rights(opens in new window), an employer may offer to pay wages on a payroll card of their choosing, but cannot require this as the only option: they must also offer at least one alternative, such as a paper check or direct deposit to an account of the worker’s choice.
Why payroll cards matter for international transfers
Many Remitly users are paid via payroll card, and understanding how to transfer money from one internationally, including any applicable fees or limits, is a practical need:
There’s a choice, even if a payroll card is offered. An employer must provide at least one alternative way to receive wages for anyone who’d prefer not to use the payroll card.
Payroll cards are generally open-loop(opens in new window). This typically means the card can be used broadly for purchases and at ATMs, similar to a standard prepaid card.
Fees vary by provider. Some payroll cards charge for ATM withdrawals, balance inquiries, or inactivity, similar to other prepaid products, so checking a specific card’s fee schedule matters.
Payroll cards and international money transfers
Understanding prepaid checking account features and considerations(opens in new window) offers useful context for payroll card users too, since both product types share many of the same fee structures and consumer protections. Reviewing a payroll card’s specific terms before relying on it to fund regular remittances helps in avoiding unexpected charges eating into what’s available to send.
Sending money internationally from funds loaded on a payroll card generally works the same way as funding a transfer from any other card, subject to a specific card’s own terms around usage and any withdrawal limits. Confirming a card’s specific rules before setting up a regular transfer avoids assuming flexibility that may not actually be available.
Your rights when an employer offers a payroll card
Federal and state rules generally require that employers offer at least one alternative to a payroll card, such as direct deposit to a bank account of the worker’s choosing or, in some cases, a paper check, meaning a worker typically can’t be forced into a payroll card as the only option for receiving wages. Employers are also generally required to disclose the specific fees associated with a payroll card before a worker agrees to use one, since some cards charge for services like balance inquiries, ATM withdrawals beyond a certain number per month, or paper statement requests. Reviewing this fee disclosure carefully, and comparing it against the alternative offered, helps in deciding which option actually preserves more pay.
Making the most of a payroll card if you choose to use one
If a payroll card genuinely is the best or preferred option, perhaps because a bank account isn’t yet available or the specific card’s features are preferred, a few habits help minimize fees. Using an in-network ATM specifically designated by the card issuer avoids out-of-network withdrawal fees that can otherwise erode a meaningful portion of a smaller paycheck. Checking a balance through the card’s official app rather than making a separate paid balance inquiry call or ATM check avoids an unnecessary fee for something that’s typically free through the right channel. Understanding a specific card’s full fee schedule, usually available in the cardholder agreement provided when the card was issued, is a genuinely effective way to avoid unnecessary costs.
Common questions about payroll cards
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Can my employer force me to use a payroll card?
No. Federal protections require an employer to offer at least one alternative to a payroll card, such as a paper check or direct deposit to an account of the worker’s choosing. Workers always retain the right to choose where wages are deposited.
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Are payroll cards safe to use?
Payroll cards are generally covered under the same federal prepaid account protections as other prepaid cards, including error-resolution rights. Registering a card properly strengthens these protections in case it’s ever lost or stolen.
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Can I use my payroll card to send money internationally?
In most cases, yes, subject to the specific card’s terms and any applicable fees for the type of transaction involved. Checking the payroll card’s fee schedule before relying on it for regular transfers helps in understanding the true cost of doing so.
In Summary
A payroll card can be a practical way to receive wages without a traditional bank account, but understanding the right to an alternative, and a specific card’s fee structure, helps in using it wisely alongside sending money home. Checking the details before relying on a card for regular transfers avoids an unwelcome surprise.
This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.