Low paid employees don't always like Payroll Cards because they can cost them big time, e.g. in the US costs can be as high as $0.50 for a balance inquiry (which low paid employees tend to use more than average), $2.25 for an out-of-network ATM withdrawal and $2.95 for a paper statement. Employers like them because they can get rid of the expense and risk of paying wages in cash, saving $2.87-$3.15/transaction according to the AFP's Decision Guide to Payroll Card Programs.

Employers considering replacing paying wages by cash with Payroll Cards, need to look at:

• sharing some of their savings by paying some of the Payroll Card charges themselves
• whether the Payroll Card charges will reduce the employee's wage to below the minimum
• how to make it easy for employees to opt out
• whether they have breached local employee legislation by enforcing the use of payroll cards

And clearly explaining the main benefits of payroll cards:

• no need to open a bank account and no credit check
• avoidance of cheque cashing fees (often 1% of face value)
• easy to get paid while on vacation, when sick or having a day off
• make purchases or pay bills with the card
• safer than carrying lots of cash.