Glossary term
Pay card
Reloadable prepaid debit card alternative to direct deposit.
Definition
A pay card is a reloadable prepaid debit card issued to employees as an alternative to direct deposit, primarily used for workers who do not have a traditional bank account. The card is funded with the employee's net pay on each payday and can be used at point-of-sale terminals, online merchants, and ATMs. Federal regulations require that employees have at least one no-cost method of accessing their full wages each pay period. Pay cards are most common at large hourly-workforce employers including major retailers and quick-service restaurants.
Example
A new hire without a bank account is issued a Walmart-branded pay card during onboarding.
Related terms
- Pay period — The recurring window of time covered by a single paycheck.
- Pay frequency — How often paychecks are issued.
- Payday — The calendar day wages are deposited.
- In arrears — Wages paid after the pay period ends.
- Biweekly — Every other week — 26 paychecks per year.
- Semimonthly — Twice per month on fixed dates — 24 paychecks per year.
See also
- Pay schedule calculator — convert salary to per-paycheck amount
- Pay frequencies primer — weekly, biweekly, semimonthly, monthly
- Frequently asked questions