Payroll Cards

Despite the many benefits of payroll cards, the product has gained a negative reputation in recent years. To encourage a constructive dialogue among industry stakeholders, consumer advocates, policymakers, and regulators, CFSI presents its first quality assessment of the payroll card industry.

2017 Payroll Industry Scorecard

Drawing upon the Compass Guide to Payroll Cards, CFSI presents its first quality assessment of the payroll card industry.
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In 2016, an estimated 8.7 million employees received their wages on payroll cards, compared with 5.5 million employees who received their wages through paper checks. For many employees, particularly those in low-paying or hourly jobs, payroll cards can serve as valuable financial tools to help them manage their hard-earned money.

However, there has been much discussion about the quality of payroll cards. High-profile lawsuits, negative press, and a wave of state regulatory actions have contributed to a lack of dialogue and understanding among stakeholders. Concerns have been raised about employees’ understanding of options for receiving their pay, their ability to access wages without paying fees, the clarity and transparency of account terms and fee schedules, the convenience of ATMs to employees’ residence and work, and the accessibility and affordability of customer service.

To contribute to this dialogue, CFSI offers its first quality assessment of the payroll card industry with its 2017 Payroll Industry Scorecard. Using the Compass Guide to Payroll Cards as our lens, we have awarded the payroll card industry the following grades across the three levels of recommendations outlined in the Compass Guide:

What we found was encouraging: payroll cards offer many of the basic features and functionality to be considered high-quality products. But, there remain opportunities for program managers to stretch beyond the basics by offering additional features that can help cardholders build long-term and lasting financial health.

Learn more about the 2017 Payroll Scorecard.

 

Payroll Cards