PAYROLL CARDS TO BE ALLOWED IN PUERTO RICO

On December 26, 2007 the governor signed into law Act 213  which allows businesses to pay salary by electronic transfer of funds to third party accounts.

Previously there were only three ways a business could pay salary: cash, check or direct deposit/electronic transfers to an employee's checking or savings account.  It would be illegal to electronically transfer salary to any other account that was not the employee's own bank account.  This situation prevented businesses from offering enhanced electronic pay options for employees; particularly the so called 'payroll cards'.  These cards operate like a debit card.  Employees  receive their net pay via direct deposit into a secure account that  is set up and maintained by a financial institution. This option is excellent for those employees who do not have a bank account nor wish to open one.