I understand that, but how would paying out via debit card reduce those costs?
There might be some kind of kickbacks involved. More likely the company has really low fees. Depending on the size of the company payroll companies can easily cost several hundred dollars to a few thousand dollars each pay period.
If the company gets a break on those fees it would save them money.
My wife does this for her company.
They save money from bank costs, check stock and bank statements are much easier with this system.
EVERYBODY is encouraged to have a bank account for direct deposit but there are some who refuse to get an account somewhere and they leave her with zero choice but to put it on a card such as these mentioned above.
My wife explains to everyone the costs from these cards, but some people can’t or won’t get bank accounts for various reasons, most of the time it’s “Legal” reasons like child support issues and garnishments...