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AMS is pleased to announce PayCard, a new program for merchants and government entities seeking a low-cost and convenient alternative to employee payroll checks.
PayCard is a debit card that works like a checking account without checks, and on which an employee's pay or other funds (such as business expenses or commissions) are deposited on payday. The card is either a PIN debit card that can be used where a PIN is accepted (almost all ATMs and most large retailers, grocery stores, gas stations, etc.), or a MasterCard card that can be used everywhere the MasterCard logo is displayed.
To learn more about PayCard, please explore the frequently asked questions listed below:
PayCard can allow you to achieve up to 100% Direct Deposit, even if you have employees without checking accounts. You can save significant costs for your company by eliminating all current paycheck costs, including reconciliation, fraud, escheatment and more. Your employees will get instant access to their pay first thing on payday, without having to stand in line at the bank. Employees that don't need or want checking accounts can save money, as they will not have to pay check cashing fees or bank account charges; they can get cash at low or no cost through thousands of MoneyPass ATMs or cash-back at most large discount retailers and grocery stores. Employees can also use their PayCard to transfer funds and pay bills safely and conveniently. The PayCard gives your employees a record of each transaction.
Three ways employees can use a PayCard
The PayCard program is designed to be no cost to employers and low cost or no cost to employees. You will not be charged any fees for standard Direct Deposit, and your only cost is what you usually pay your ACH provider for Direct Deposit. Employees are not charged monthly or annual fees, or fees for Internet balance inquiries, statements, or POS transactions, including cash-back. In many cases, the PayCard can be completely free for employees. If employees want the convenience of ATM withdrawals, transfers, or other optional services, there is a modest fee associated with these services. For employees who use ATMs for cash access, AMS provides surcharge-free access to thousands of convenient ATMs nationally through the MoneyPass Network (note that there will still be a charge for the PayCard ATM transaction, but there will not be an additional "surcharge" at MoneyPass ATMs).
How many cards can an employee get? There is no limit on how many PayCards an employee may have. Employees may get cards for a spouse, children, or other dependents. Many employees who transfer funds to relatives outside the US obtain a second PayCard under their name and send the second card on that PayCard to their relative. In such cases the employee decides how much of his or her net pay goes on each recipient's card.
How does an employee's pay get on the card? PayCards use the Direct Deposit process for payroll. To manage special situations, or for employers who do not have access to Direct Deposit, AMS provides a Funding PayCard that allows you to put funds on your employees' PayCards real-time. In addition to managing everyday pay, the Funding PayCard can manage special situations (to handle errors and "last day pay" issues). A Funding PayCard is a PayCard owned by the employer and in your company's name. You transfer funds onto the Funding PayCard just as if it was an employee's Direct Deposit. You then transfer funds from the Funding PayCard into your employees' PayCards, using either the Internet or telephone via a toll-free number.
Can I eliminate all paychecks? Depending upon the laws of your state, you may be able to eliminate all your paychecks. Most states require that employees be able to gain "free and clear" access to their payroll funds. The PayCard program provides several "free" alternatives for employees.
Who takes the risk of loss, fraud or theft? Once the funds are transferred onto the employee's PayCard, the PayCard is responsible for any losses from lost cards, fraud or theft, as long as any such activity is reported on a timely basis and unless the employee or employer is implicated in the fraud or theft. Thus, a PayCard is far safer than a paycheck or cash for the employee, as the funds will be replaced onto a new card.
Getting started on the PayCard program is a straightforward process. Your company will need to set up Direct Deposit if it is not already in place. If needed, AMS can assist your company in getting set up with Direct Deposit.
Your employees will need to complete brief enrollment forms, which are returned to AMS. AMS mails the PayCard to your employee, and the enrollment form back to you. When you receive the form, the employee should have his or her card, and you can use Direct Deposit to load the next payday's funds onto the employee's PayCard. Depending upon your requirements, you may be able to deposit pay on your employees' PayCards in as little as two weeks.
If you would like to learn more about how your business can benefit from this program...  |
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