Unraveling the Distinction: Debit Card vs. Payroll Card Explained

A payment card is a convenient financial instrument for carrying out any transactions with money. Having it at your disposal, you do not have to worry about the safety of your funds. You can use it to pay in stationary stores or for online purchases, withdraw cash from ATMs or transfer money to other cards and accounts. The scope of services available to cardholders is almost the same. However, what is the difference between debit and payroll cards? In this material, we will overview the features of both types of cards and their main differences.

What is a Debit Card?

Debit, payroll and credit cards are the most popular among cardholders. The credit card limit is set by the financial institution that issued the card. That is, the user first spends the money of the conditional bank and then reimburses it for the debt, taking into account various commissions for using other people’s money. To use a debit card, it is necessary to put money into the account initially, and only after that it can be spent. Thus, a debit card is a plastic carrier linked to an account with the holder’s funds.

The money on a debit card can be used without restrictions to pay for purchases in retail stores and online. A debit card can be physical or virtual, single-use or multiple-use. The cardholders are solely responsible for its maintenance. They pay the fee for maintenance, SMS notifications, and other services offered by the issuer. The service level of debit cards can be classic and premium. These cards can be Visa, MasterCard, etc.

How Does a Payroll Card Differ from a Debit Card?

A payroll card is essentially the same as a debit card, only tied to a specific payroll program. The employing organization can open a payroll project in any bank or use a special Wallester Business platform. Accrual of salaries to cards, rather than issuing them in cash, has a lot of advantages:

•       payment is centralized for all employees;
•       no time is wasted on receiving paychecks at the cashier’s office;
•   the salary is credited automatically wherever the employee is at the moment of crediting;
•     the company does not need to collect large sums of money when paying salaries at large enterprises;
•   the employees can carry a small amount of money on the day they receive their paycheck.

For payroll to be credited to the employees’ cards, they does not need to go to the bank, as it happens with a debit card. The employer makes all the necessary requests and documents on his own. The employee only fills in the registration form without leaving his workplace.

Debit and payroll cards are issued with the same zero limit. The holder himself replenishes the debit card, while the employer credits the holder’s salary, vacation, sick leave, bonuses and other funds related to the cardholder and his professional duties to the salary card.

Another difference between the cards is that the debit card holder determines which institution he wants to open. The employers choose the organisation where the payroll project is opened at their discretion. At the same time, in most cases, the employers themselves pay for the maintenance of payroll cards.

Where to Open a Payroll Program?

There are two options for launching a payroll project. You can apply to a banking institution that will offer the best conditions for the employer. In this case, the company will always depend on the will of the bank and any questions about payroll management must be addressed to the issuing bank. Use the second option, which is much easier, faster and more comfortable, to launch your payroll project. To do this, it is enough to get access to the Wallester multifunctional platform. Let’s list the main advantages of using it to launch your payroll program:

• wages are credited to cards in no longer than one minute;
• employees and branches incur zero costs, as there are no card maintenance fees for cardholders;
• time is saved because up to 1,500 payments can be made simultaneously;
• wages can be paid at any time and anywhere in the world, wherever the cardholder is located;
• payroll card management and limit setting are done through a single platform;
• the platform can be easily integrated with any software already used by the company.

Not only payroll cards can be issued on the Wallester platform. You can issue any number of credit, debit and prepaid cards instantly. These can be both physical and virtual cards.