USD INR ₹ 83.31
GBP INR ₹ 106.04
CAD INR ₹ 60.87
Articles

Best Apps for International Money Transfer

Updated on April 14, 2022 11:53 am
Woman using international money transfer app

Payments apps have taken the world of money transfers by storm. We can simply pay for almost anything or send money to friends and family in a fast, easy, and secure way through our smartphones.

Sending money using a mobile app offers several advantages over using a website or in-person transfer. The best money transfer apps have the most straightforward user interface, have a high app store rating, involve no hidden fees, and a combination of security features that protect users to make the transfers safe and secure. These apps also come with consumer-specific needs and financial features such as international payments, virtual wallets, social options, etc.

Predominantly, banks were the leading players when it came to transferring money domestically or internationally. However, banks have been slow in embracing the digital transformation in the financial sector, giving rise to several third-parties money transfer apps to facilitate digital payments making transferring money between people easy and convenient.

Banks have also entered the online banking and mobile banking space with their banking apps. Conveniently, we can connect our bank accounts with these apps and get the money deposited directly into our accounts with a few taps on a smartphone.

CompareRemit, a leading online marketplace for remittance service providers, recently launched CompareRemit app to help users compare top money transfer companies' apps in terms of exchange rates, fees, speed, and more. The app is available on both iOS and Android systems.

orO-N1Mm0YEa5BWlyCOFbT_cj-OFiLR2WUKMpwV7EkQP9_x_VFekOujWsmtt6bx8YthtGvMJYfClgp2KDchVQ_ga2qgW9RmPjYFmOLTDQZuwpNRHU0cYjjx4S8dbR6gtwkV9CacP


The CompareRemit App is linked to top money transfer apps allowing users to be redirected to their preferred money transfer app and make a transfer seamlessly. This checkout feature is sure to enhance the user experience tremendously. Additionally, improved promo code and coupons integration in the app ensure personalized and faster access to offers by money transfer companies.

Is there an app to transfer money internationally? There are plenty! With so many choices and a plethora of features, it is important to research and find the best app for international money transfer most suited to your transfer needs.

In this blog, we have listed the best apps for international money transfers and what money transfer app is international to make it easier for you to pick one.

Which is the Best App for International Money Transfer?

XE

XE money transfer allows international payments on their website and app. XE is part of Euronet Worldwide Group, one of the largest money transfer businesses in the world.

UTksUjzHxB6-sp3nSZDZbO5DFVGpowznT_Zpq_AKGl2YYGVzYstGysouuAXKB10VHS67DUqa7IqlNJd0kvYU7RPAcUCn540H7mqany9nehBZ8gC-Mot7UczTGz-XtuC1CxhCJw6g

Features of Xe money transfer app

  • Xe app is available on iPhone, iPad, Android, BlackBerry, Windows phones, and Windows 8
  • Send money to 130+ countries to the recipient?s bank account
  • Cash pickup is only available on the Xe app (at a specific store, Xe branch, or selected partners)
  • Check live mid-market exchange rates for global currencies through the Xe Currency Converter
  • Track your transfer
  • Set rate alerts of your chosen currency pairs
  • View historical currency charts for any currency pair
  • Add unlimited recipients easily
  • $3 for transfers below $500 for all international transfers
  • No fees for transfers above $500
  • Transfers can take up to 4 working days
  • Payments via bank or wire transfer, credit or debit card
  • Google Play store rating: 3.8/5 stars; App Store rating: 4.4/5 stars

Skrill

Skrill is a digital wallet platform based in London that allows users to make payments and transfer money online. With Skrill international money transfers, you can choose from 40 different currencies and send money directly to a bank account, mobile wallet, email address, and phone number. Skrill offers zero transfer fees for an international money transfer to an overseas bank account.

pGh5SJ-AkF6hVjoDeTp-0_LS3peIrbFbNZ1a3DCH0Qa7f6FMI78Dy8tqJtO4csz6udlB_H45sphPWnRvU2j9c3H273NpAV92a2cWVBJE9dU4JOl5HYGCorbExsPg_PX1t93MMUKv

Features of Skrill money transfer

  • Send money in 40 currencies to 180+ countries
  • Transfer money directly to a bank account from the Skrill wallet
  • Low and transparent fees
  • Set daily alerts on Skrill exchange rates
  • Receive real-time notifications for transactions
  • Customer support in multiple languages
  • Fund account via credit or debit card, bank transfer, or local payment methods
  • Upgrade account at zero cost
  • Avail Skrill Prepaid card to withdraw cash at ATMs globally
  • Make payments with the prepaid card wherever VISA is accepted
  • Transfer speed within 24-72 hours
  • Excellent Referral program
  • Google Play store rating: 4.4/5 stars; App Store rating: 4.5/5 stars

Wise

Wise (formerly TransferWise) is a London-based online and mobile payment service known for its upfront fee and real exchange rates. It is currently available in 59 countries and allows money transfers to over 80 countries. Wise claims that the cost of transfer is 8x cheaper than average banks in the UK along with faster delivery. There is no maximum or minimum for a transfer.

wfbLsi-2wvszP9k-1YMJbgCGWOmbiF6pd8YBPq_0LsuG2uqvQ5Q3NpWs20bwg6qDiaWVSBvJRvnIS-hyqhnWcczvVpZCBAtTEd2v3JlwCZtNbkXhexuacIAAg-pLv_YCAddSi9dm

Features of Wise money transfer app

  • Cheaper and faster international transfers
  • Low fees and real-exchange rates
  • Get a Wise debit card to spend and withdraw money in 200+ countries
  • Multi-currency account option
  • Hold 50+ currencies and convert between them for a super-low fee
  • Get instant push notification for every transaction
  • Avail Wise business account
  • 50% of transfers are completed instantly or in an hour
  • Google Play store rating: 4.3/5 stars; App Store rating: 4.6/5 stars

PassTo

PassTo is a UK-based mobile app that offers an easy way to send money to over 60 countries worldwide from the UK. Their secure mobile platform only takes a few minutes to download and sign-up for. 

Some of PassTo’s benefits include:

  • Receive a discounted welcome rate for new users
  • Ability to send money to over 60 countries worldwide and growing
  • Always get the best exchange rates possible
  • Transfer money in as little as a few minutes or same day/next business day
  • Excellent customer service ready to assist you via email, phone, or in-App chat
  • FCA regulated and completely secure
  • First 2 transfers are free!
  • Send up to £2,000 per day

Send money from the UK with PassTo today!

Remitly

Remitly is an online-based money transfer provider offering affordable, quicker, and convenient money transfer services. Currently, it allows money transfers from 17 countries, including the USA, Canada, United Kingdom, Singapore, and Australia, to over 90 countries. You can send money either on their website or app.

vMTQfMXA_t98h0dMsj-fU92IoFZktsS90Jz6raRGNWr-bjNsSqOVoYArwEdNwawMzXW9TQMdyoiSjEYK7VIdx3k6ouTueGkUe6YOSUuwXX36g8Etu-JJMGgtztX2ORHLVv0qK_uD

Features of Remitly money transfer app

  • Transfer directly to 130+ banks in India, 20+ banks using UPI
  • Opt for cash pick up at 100,000+ locations in India
  • No transfer fees for transfer amounts above $1,000
  • Offers two modes for sending money - Remitly Economy and Remitly Express
  • Promotional exchange rates for first-time users
  • No hidden fees
  • Receive the exact date and time of the arrival of your transfer
  • Google Play store rating: 4.8/5 stars; App Store rating: 4.9/5 stars

ICICI Bank Money2India

ICICI Bank is one of India?s largest banks. ICICI Bank launched Money2India in 2002 to facilitate money transfer services to India from countries like the USA, Singapore, and UAE. Money2India is one of the best choices to send money to India for quick transfers to ICICI bank accounts in India. The Money2India mobile app was launched in 2013 to enhance the ease of transactions and be more customer-centric.

3VzAXnVjyqObGTMr_iCZ7ksahlVQowDYUJbvgi1Q2J4ILo1SUuLkMVzyyx3CMk1w3KL6-iSrghVwfUr1e9OcnkcTGzr1q7Bv4j5CC5h49zWQMWWbCLLnpO0Ffh8RYuX8vEkGc2j_

Features of ICICI Bank Money2India money transfer app

  • Transfer money to over 100 banks in India
  • Send money on the go
  • Send money from the USA to ICICI bank accounts in India within an hour
  • App available for iPhone and Android users
  • Give voice command to Siri on iOS phones (v10 and above) to initiate the transfer
  • Add beneficiary accounts through Whatsapp, Gmail, Facebook via Social Pay
  • Repeat a transaction in only 3 clicks with Quick Pay
  • Track transaction stage wise
  • Get instant push notifications and alerts
  • Pay bills in India
  • Customer support available by phone and email

State Bank of India-California (SBIC)

State Bank of India-California (SBIC) is a full-service bank offering an extensive portfolio of commercial lending solutions, personal and business banking products, and international services. SBIC, a fully owned subsidiary of State Bank of India, has several branches in the state of California, with headquarters in Downtown Los Angeles.

SBIC is one of the fastest ways to send remittances to India from anywhere. There are three ways to transfer money: Online, SBIC Mobile App, or at any SBIC branch. Use SBIC app to transfer money internationally for free.

2LpcZnm98k0_WY-jBEhOfifCWELT0aeQiQ1gWlVS4pMdW-kDIlICUVKcVv3kiLsci_ayh4f2JXOQJZ_V70mRRM6sLHddkwPgQNRFLHYGymTcoHDz0mhDVDGNSxv-nItFZlIB0oy3

Features of State Bank of India-California (SBIC) money transfer app

  • Attractive and competitive USD to INR exchange rates
  • Zero transfer fees on any transfer amount via the SBIC Mobile app or online
  • Transfers are completed within a few hours
  • Receive alerts and notifications
  • Pay bills, check balances, make deposits, make a person to person transfers on the SBIC app
  • Locate nearby branches and ATMs with the device?s built-in GPS
  • Stores beneficiary?s information for the future transfers
  • Mobile transfer limit: Daily: $25,000; Monthly: $50,000
  • Google Play store rating: 3.9/5 stars; App Store rating: 3.7/5 stars

Instarem

Instarem is an online remittance service provider based in Singapore and regulated by nine financial regulators. Like Wise, it offers transparent fees and real mid-market exchange rates. It allows customers to send money to 55+ countries via its global network of 8000+ banks. They charge a percentage of your transfer amount as a fee (varies between 0%-1% depending on the sending countries and transfer corridors).

fviW7QofKVzh7FWAl2wCnNi4N3OExYE1kVWgem62d1hzB-LAgoptUpXsn0vW1BXsn8RwLdP7CCsq90PhuBm5mRveOXku2mqcY79qB3DQU_FsPMVP-xkcNs9Kne5gPY1mHpAA_3H6

Features of Instarem money transfer app

  • Send money on the go with Instarem app to 55+ countries
  • Low transfer fees
  • No hidden charges
  • Zero margin exchange rates
  • Multiple payments and pay-out options via card, bank account, and cash
  • Track your transfers
  • Same-day or next business day delivery
  • View transaction history, update payee list, etc.
  • Open business account for easy business transactions
  • Get discounts, first transfer bonus, and referral bonus
  • Google Play store rating: 3.9/5 stars; App Store rating: 3.9/5 stars

Panda Remit

Panda Remit is an international remittance service founded in Hong Kong by Wo Transfer Limited with investment from world-famous investors such as SEQUOIA and Light Speed. They have offices in Hong Kong, Sydney, Tokyo, Hangzhou, Denver, and Singapore. Panda Remit offers money transfer services across 30+ countries.

6qemgMwtrmEqJug42Zi1IzPGbw0digXHcyW6LzLF5jyHL4OcGv7OeIGxh1GOe2fVcyFtfxLKUAAULqsQ5pYYhVLh1Ly7VvV25hLeQfVvS8CqC6XTKUs2ZDusvzX5fuzT3EYCQa5Z

Features of Panda Remit money transfer app

  • Zero fees on first transfer
  • Send money to 30+ countries
  • Low fees and attractive exchange rates
  • No hidden fees
  • Receive money within minutes (as fast as 2 minutes)
  • Track transfer status
  • Receive money in a digital wallet, bank cards, and cash pick up options
  • 24/7 customer service
  • 100% satisfaction guarantee or get your money back
  • Google Play store rating: 3.1/5 stars; App Store rating: 2.9/5 stars

Pangea

Pangea is a remittance service provider offering fast, secure, easy and affordable international money transfers to bank accounts and debit cards in 40 countries worldwide. Money transfers are done with just a few taps and received within minutes. Pangea?s digital-first remittance platform can be integrated with any third party, enabling partners to offer international money transfers in their partner apps or websites.

2BHEJkVEWwptLzuX-tozjyeJu85xq-smJmwR-YVCpkEncR-jYq8KO0V6RGDsBb-mtmfcoA2wdwYTk3vypekyKEJVFiT59Joo8q4kw242cRT6E_6WkD88OqQ34boutaW5cc59YJh3

Features of Pangea money transfer app

  • Money transfers via the mobile app are completed in 30 seconds or less
  • Send money to bank account, debit card, mobile wallet, or cash-pick up at retail locations
  • Pay international bills, set automatic transfers
  • Use the Pangea Visa Debit card to deposit or withdraw cash
  • Competitive exchange rates
  • No hidden fees
  • Cutting-edge technology to protect your money
  • Responsive Customers service
  • Discount offers for new customers
  • Remittance services available in 25 countries
  • Google Play store rating: 4.6/5 stars; App Store rating: 4.5/5 stars

Paysend

Paysend is a money transfer company based in the UK, with over 5 million people using it for their international money transfers. It is the first payment company to introduce global card-to-card transfers. Paysend currently serves 135,000+ SMEs across the globe and supports connections between 12 billion cards worldwide across Mastercard, Visa, China UnionPay, and local card schemes in several countries.

pH1elCJEmV8c-OLyKllJwVAkD77HaT_-bpLKnFzTKeHe_DuQypVBGuXVwAFoZwOOoC7X0yIsr9opz7mpO8bUp1VfQS1XHxbWh9wcwJQRr_Z7f9rBLb2POkjxyx4PIsXPipsV9o-c

Paysend money transfer app helps you send funds to over 100 countries worldwide with its simple, fast, and low-cost transfer services.

Features of Paysend money transfer app

  • Send money to friends and family in 100+ countries in minutes
  • Upfront exchange rates and transfer fees
  • Low and fixed fees
  • 90% of transfers arrive in 15 seconds or less or can take up to 3 days
  • See receivable amount in local currency before making any transfer
  • Money transfer to international bank accounts with zero transfer fees
  • Send money to credit, debit, or prepaid card at a flat fee
  • Google Play store rating: 3.4/5 stars; App Store rating: 4.2/5 stars

Conclusion

As we have discussed, there are diverse apps for international money transfers, each with its perks and drawbacks. One app may be only suitable for some, while it may not be the best choice for others.

For instance, some apps may be only available to users of certain countries. Also, factors like transfer cost, transfer limit, transfer speed, and geographic location of the senders and recipients have to be considered when picking which app is best for international money transfer. Download the CompareRemit App to compare and find the best app for international money transfer today, or visit our Compare Rates page to get started on your first money transfer service comparison today. 

 27061 views
Rate article:
(5.0)
 
 
Money Transfer FAQ's
Related Articles
Money from India to UK
Best Way For An NRI to Repatriate Money From India to UK

 When it comes to repatriating large sums of money from India, it puts every NRI in a situation where he has to consider different obligations regarding monetary cross-transfer. Taxation, reliability and transfer timelines are a few things that influence these decisions.Personal finances have to be dealt with delicately and ensured that there is no loss during the due process of remittances. There are various options available in the marketplace today, be it via traditional banking or the modern ways of online transfers.CompareRemit offers a platform that allows you to compare different players in the market and pick the best rates that suit your needs.Repatriation from an NRE AccountAs a component of the liberalization scheme of the Reserve Bank of India, remitting funds from India has become relatively easier. Balances in NRE (Non-Resident External) accounts are freely repatriable. No formalities or requisite permissions are required for remittances abroad be it any amount. Funds in accounts are usually funds deposited from abroad or current income like interest or dividends on investments made through foreign funds.Repatriation from an NRO accountBalances in NRO (Non-Resident Ordinary) accounts are subject to certain conditions. The remittance of USD 1 million per financial year from NRO accounts is allowed subject to certain procedural formalities. NRO account balances include income earned locally or certain capital account transactions. Form 15-CA and 15-CB need to be submitted before a remittance can go through.Read more on difference between NRE and NRO account on CompareRemit.The Traditional Option - BanksThe most sought after choice for remittances to the UK are banks. Banks are the most popular means of transferring money to the UK because:There is a high level of trust owing to the various government regulations.Familiarity and the comfort of knowing the neighborhood-friendly banker.There are two ways one could remit funds using banking services:Online - If your bank has given you access to internet banking and allows repatriation through online instructions.In-Person - One could walk into the bank yourself and have the formalities completed there and then and have the satisfaction of seeing it to its destination with a receipt in your hand.However, it is important to note that INR to GBP/GBP to INR exchange rates may not always be competitive. The transfer fees can be high and the charges, not always transparent.Selection of Remittance Service ProviderShould you want to avoid remitting through banks, approaching a marketplace of money changers would be the next best option. A selection of remittance service providers should be made based on the following:- Transfer chargesSpeed of transferExchange ratesCharges on the conversion of currency (INR to GBP)Freeze option on exchange rate while process requirements are completedFlexibility of payment optionsAlternative Options for Remittance from India to UKWise - UK based transfer service supporters - Wise incorporates credit cards/debit cards, SWIFT, international transfers to bank accounts, domestic wire transfers and more. Wise offers competitive exchange rates for pound to rupee or rupee to pound conversions. It assures fast and low-cost online money transfers from India to the UK.ExTravelMoney - One of the easiest services for transferring funds from India to the UK, they also offer the facility of booking orders online.Western Union - In four easy steps available online and your money is sent from India to the UK. They offer competitive rates and faster transfers as well.Thomas Cook - Provides the best foreign exchange rates besides giving the assurance of secure and timely remittances for specific purposes.BookMyForex - With zero commission and zero charges, they claim to send money from India to the UK at guaranteed lowest exchange rates. The time span for the transfers to be effective is 12 to 48 hours.To select the right money transfer service one should keep the cost and time factors in mind. Convenience at a reasonable cost should be the mantra for selecting a suitable remittance service provider.

eseva
Sending Money To Nepal: eSewa International Money Transfer Service

Growth in digital remittances can be a game-changer in international remittances, mainly in terms of reducing the cost of global money transfer, increasing accessibility, and being more customer-centric. In the case of Nepal, which is one of the highest recipients of remittances in the world, youth are leading the mobile and digital revolution in the country. 50% of the users of eSewa, Nepal's most prominent digital wallet, are between the age of 18 to 30 years. With eSewa, users can make various payments such as pay utility bills, pay internal bills, recharge phones, book airline, and bus tickets, scan and pay to merchants, make a bank transfer (from eSewa to a bank account), and so on. There are also cashback and reward points upon registration. Established in the year 2019, eSewa Money Transfer is affiliated with F1Soft Group. With 15 million users (almost half of the country's population), F1Soft has been the leading fintech company in Nepal since 2004. eSewa is licensed by Nepal Rastra Bank under foreign exchange regulation, so it is a safe and highly regulated mode of money transfer. It offers traditional brick-and-mortar and agent-based remittance services along with the non-traditional digital modes of remittance.Money Transfer Services from the U.S. to Nepal with eSewa eSewa is partnered with various leading money transfer companies such as MoneyGram, WorldRemit, Remitly, Skrill Money Transfer, TerraPay, WireBarley, enabling customers from the U.S. to send money to friends and family in Nepal directly into the recipient's bank account or eSewa wallet.The account deposit service is available in more than 65 banks in Nepal. With more than 4.2 million registered eSewa wallet users, the addition of remittance service to eSewa wallet will provide a boost in remittance inflow to Nepal.Remittances to Nepal constitute a major portion of the country's foreign exchange reserve, surpassing both the official development assistance and the total foreign direct investment. In 2019, Nepali migrant workers sent home $8.64 billion which constituted 25.4% of the country's GDP. Sending Large Amount of Money from the U.S. to NepalThe U.S. to Nepal money transfer corridor is a thriving one, with many money transfer operators competing for business. Here are the top 5 money transfer service providers from the U.S. to Nepal.XoomPayPal-owned Xoom, a leading digital money transfer provider is one of the fastest, secure and convenient ways to send money from the U.S. to Nepal. The Xoom mobile app or website allows users in the U.S. to send money in an instant to friends and family in Nepal using their U.S. bank account, debit card, or credit card. Xoom has partnered with major banks in Nepal - Everest Bank Ltd., Nabil Bank, Himalayan Bank, Nepal SBI Bank, and others offering instant bank deposits. The money can be transferred to a bank account or picked up from an agent location (from over 4000 cash pickup locations) in Nepal. The maximum transfer amount is $9,000 per transfer when using Xoom transfer. The transfer fee varies depending on the method. Bank transfers are usually free of cost. Fees for payments by card are percentage-based.Do keep in mind that a margin is added to the exchange rate when converting U.S. dollars (USD) into Nepalese rupees (NPR).Wise (formerly known as TransferWise)Wise (Ex-TransferWise) is a London-based financial technology company regulated by (Financial Conduct Authority) FCA in the UK. For online money transfers from the U.S. to Nepal, Wise is a secure, fast, and low-cost option. There are no hidden charges, no marked-up exchange rate. Wise gives you the interbank exchange rate for your transfers. You can pay by direct debit, bank transfer, debit card, or credit card. Bank debit or ACH is the cheapest followed by bank transfer. While payment via credit cards has more fees. Depending on the transfers, the money can be reached in one day or even within seconds. There are limits to how much you can send to Nepal. For larger transfers, Wise might ask you to provide your ID card. To initiate the transfer process, sign up online or in Wise's app for free.WorldRemitWith WorldRemit, Nepalese immigrants in the U.S. can send money online to recipients in Nepal. The money can be received via cash pickup, bank deposits, mobile money, and even airtime top-up.The cask can be pick-up from thousands of Samsara, NIC Asia, and Citizen Bank locations within minutes. The bank transfer may take 1 business day.You can send up to $5,000 per transfer with bank transfer and up to NPR 300,000 with the cash pick-up option. A maximum amount of NPR 1,000,000 can be sent in a day. The transfer fee will depend on the transfer amount. WorldRemit adds a margin to the exchange rate.Muncha Money TransferMuncha money transfer lets you send money to Nepal from all the 50 states in the U.S. It is a preferred choice for many NRN (Non-resident Nepalese) as an online payment gateway. Muncha Money Money Transfer and ThamelRemit are popular ways of sending money.An individual with a U.S. bank account can transfer money to the recipient's bank account in Nepal. It takes about 48 hours to complete the transfer. It is licensed by Nepal Rastra Bank, so your money is safe and protected. It offers ACH transfer and can send up to $10,000 per transaction from the U.S. to Nepal. The first transaction is free for all customers.ThamelRemitThamelRemit is an online money transfer platform for sending money from the U.S. to Nepal. It is trusted by more than 50,000 Nepalese in the U.S.The platform is supported by Siddhartha Bank Ltd., one of the fast-emerging banks in Nepal, and is powered by MachNet.The transfer is carried out via ACH where money is directly debited in USD from your bank account in the U.S. and transferred to the recipient's bank account in Nepal in NPR. There is no charge or bank processing fee within Kathmandu Valley.Outside Kathmandu Valley, there may be a bank processing fee that is deducted from the recipient's bank account as per the particular bank's rules and regulations.  The exchange rates offered are highly competitive and fees are affordable. You can send up to $10,000 per transaction and get the money deposited into the destination account in 48 hours.TakeawayThanks to the increasing number of users of digital payment platforms like eSewa and others, the cashless transaction is becoming a reality in Nepal.The above list is not an exhaustive list of all the services available to send money from the U.S. to Nepal. It can be difficult to choose one from a plethora of options. Before you make the transfer, compare the money transfer service providers to get the best value for your money while sending money from the U.S. to Nepal.Nepalese living abroad prefer to send remittances directly through mobile banking, internet banking, or digital wallet. It offers ease of use, convenience, lower cost, and a competitive marketplace of the money transfer industry that gives better service and better exchange rates.

hands holding up payday sign
Everything You Need to Know About Paycard

How do you pay your employees? As an employer, paying your employees is an important part of your business. Direct deposit to your employee's bank account or issuing paper checks are two of the most common ways of compensating them. Gone are the days when employees used to get paid in cash.But what happens when some employees have no bank accounts? This is where paycards come in. Paycards for employees are an alternative option when the employees do not own a bank account, and the employers do not want to pay in hard cash.It is estimated that about 5.4% of U.S. households (approximately 7.1 million) were "unbanked" in 2019, according to the U.S. Federal Deposit Insurance Corporation (FDCI). An unbanked household means no one in the household had a checking or savings account at a bank or a credit union.For small businesses with employees with no bank accounts, paycards can be a convenient option as a payment option.Direct deposit and paycards both offer the benefit of a paperless payroll distribution process and allow the employer to electronically transfer funds conveniently. While direct deposit is the norm for many businesses, paycards are gaining popularity each year.There are pros and cons of using paycards, and in this blog, we will discuss if paycards are right for your business and employees.What is a Paycard?Paycard is a lot like a prepaid debit card as it is made of plastic and can be pre-loaded. In the case of a paycard, the money loaded comes from the employer in the form of an employee's pay. The card carries the issuer name such as MasterCard, Visa, or Discover.Are Paycards Good, and Who is it For?A pay card can be used to pay an employee who does not have a bank account. Paycard holders or employees can cash out from paycards at a bank, ATM, or other point-of-service locations.Employees can also pay bills over the phone using their paycard number or authorize electronic bill payments to specified companies.Employees can use paycards at any merchant, grocery store, retail shop, or gas station that accepts debit cards.Do Paycards Have Fees?By law, employees must be able to access their wages in full without any fees. They can obtain the cash at a bank teller, ATMs associated with the card issuer, pay bills by telephone, or use the card for point-of-sale purchases.However, there may be fees for electronic fund transfers or for cash withdrawals at ATMs that are not in the issuer's network. There may be fees for card replacements, balance inquiries, inactivity fees, or other reasons. The Consumer Financial Protection Bureau issued a rule in April 2019 that paycard issuers must disclose all the fees to cardholders.Employees must be informed of the potential fees. The paycard issuer is required to give you disclosures on such fees before you sign up for a paycard or a payroll card.Also, paycards are regulated by state laws, so you might have to check for additional details depending on your state. Some states are making efforts to reduce fees that affect employees.As you can see, paycards fees mostly affect employees. In the case of direct deposits, employers are the ones who have to pay fees for setting up the payroll distribution system and a transaction fee for each time they transfer wages into an employee's account. The payroll software may also charge a fee for their service.Can Employers Save Money When Using Paycards?Since paycards are reloadable cards, employers can have the banks reload the paycards with their employees' wages for the pay period, avoiding the costs and hassle of issuing paper checks, mailing them, or re-issuing lost checks. The savings may not be a substantial amount but they can add up gradually.Can Employers Choose between Direct Deposit and Paycards?While there is no mandate that employers can only offer either direct deposit or paycards to their employees for their wages, it is safe to check with your state's law on payroll distribution.One-third of states allow employers to require employees to have bank accounts for direct deposit. In such a case, paycards may not be needed. Also, there is no law preventing employees with bank accounts to opt for paycards as their payment option.Though generally, employees tend to prefer direct deposit because of its efficiency and the least costly method of payment, as a business owner or an employer, it is better to give options instead of imposing only one method.Ask your employees about their preferred method of payment and what benefits (convenience, low fees, etc.) serve them the best.In fact, Federal law requires employers to offer alternative payment methods like paper checks or direct deposits.Should Employer Provide Pay Stub?Pay stub provides details of the employees' pay for each pay period. Employers are not required by federal law to give employees their pay stubs. However, many states have laws that require some form of written pay statement.Even if your state doesn't need you to provide pay stubs, you are still required by the Fair Labour Standards Act to keep track of your employees' working hours.For employees, a pay stub gives a record of their wages, deductions, contributions, and other information. It is also proof of income or employment, which is often needed when applying for a loan, credit card, or housing.For employers, a pay stub is useful for tax purposes, and it can be used to resolve any discrepancies with employee pay.Is it Possible for Paycards to be Overdrafted?Usually, paycards works like debit card, allowing cardholders to withdraw up to the limit of the loaded amount. However, there are paycard that allows overdraft for employees. But it can come with hefty overdraft fees if employees use funds over the limit in their account. Usually, you should be able to prevent misuse by subscribing to an overdraft protection service.Will Paycard Affect Credit Score?Paycards, like all prepaid cards, do not affect an employee's credit score.What is a Paycard Gets Lost or Stolen?A replacement card can be issued in such cases. The employee needs to notify the employer, and then the employer should immediately notify the card issuer. The employee is not liable for the incident as long as the issue is timely reported. Paycards come with similar protection as that of a prepaid card.The reporting time is determined by the card issuer. If you wait longer to report after learning of the loss and theft, the fraudulent charges may increase. You may have to pay a fee for the replacement card.Pros and Cons of PaycardsProsA win-win situation for unbanked employees and their employers.Green alternative to paper checks.Immediate payment to employees.No hassle of cashing a paycheck.No monthly or maintenance fees.Added security when assessing their funds (paycards require a PIN).Employees can report to the issuer if funds are used unauthorized.Paycards can be reloaded during each payday, saving money on issuing paper checks.Added efficiency for the employer as the employer would not have to physically present or mail paychecks to unbanked employees.ConsEmployees may incur fees for several reasons. Be aware of such potential fees.Employers have certain responsibilities to educate employees about the usage of paycards.Limited range of services and flexibility in managing your funds compared to bank accounts and other prepaid cards.The best paycards programs are easy to set up, have lower fees, quick access to funds, and provide a range of benefits such as cashback and discounts. We have made a list of popular paycards providers for businesses:Wisely Paycard by ADPOnline portal and mobile appCompatible with Apple Pay, Samsung Pay, and Google PayZero cost sign upNo hidden feesNo credit checkNo overdraft feeZero cost direct deposit of pay and other sources of income (including government benefits)Accepted wherever Visa is acceptedKeep track of spending and account balances 24/7 on the appGet cash back at major retailersSurcharge-free ATM withdrawalsFDIC insuredSecurity features include instant card lock, purchase protection, and travel alert notificationsRapid PaycardDirect Deposit onto rapid paycardLoad funds from approved checks with Ingo Money mobile appsNo fee for cashing paycheck24/7 account access with rapid! Access mobile appNo credit checkCan be used at ATMs, merchants worldwide, wherever Debit Mastercard or Visa debit cards are acceptedPay bills and make purchasesBook airline and hotel reservations onlineEarn interest on savings accountGet cash back rewardsFDIC insuredMoney protected with Zero Fraud LiabilityKittrell PaycardNo fees to use (there are fees for certain situations)Fee-free ATM network with MoneyPassWebsite and Kittreall AppGet real-time alerts and push notificationsCash back at point-of-sale terminals2-way texting to manage your card and accountCompatible with Apple Wallet, Google Pay, Samsung PayEasy portability (Get direct deposit of stimulus checks, tax refund, benefits)Freeze or unfreeze card on-demandSkylight PaycardZero sign up feeNo credit checkNo minimum balance Personalized your card with a family photo or unique imageManage money anywhere on Mobile AppDirect deposit your government benefits, tax refundsUse anywhere where Visa Debit & Debit Mastercard are acceptedFDIC insuredZero liability protectionPay bills onlineEarn interest on savings accountEarn cash back with Payback RewardsSend money to or receive money from friends and family with Netspend cardsSet text alerts about transactionsRefer a friend and boost your card balanceSkylight overdraft limit is $100 & 3 times/ monthConclusionOverall, paycards can be convenient and cost-effective for employees and employees when compared to paychecks or for those employees with no bank account. And the paycard fees are becoming more transparent and competitive.While paycards can be challenging at times, especially when you are employed in multiple jobs and have a separate paycard with each employer, your funds are scattered in multiple cards so it becomes difficult to manage your finances. Some may prefer to put all their money in one place, like a checking account.However, if you can't open a bank account, a paycard is a great option to get paid. Read the fine prints before signing up for a paycard and know the potential fees that come with it.

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App