Choosing How to Get Paid

Cash

Paper or coin money minted by the U.S. government

• Can spend it almost anywhere
• Easy to access

• Could be lost or stolen, especially if you carry large amounts with you or leave it in your home
• Some people find it tempting to spend on a whim, making budgeting and saving more difficult
• Can be more difficult to track spending for personal budgeting and tax purposes
• Not all bill payments can be made in cash

Paper check

A physical check given to pay you the indicated amount; has to be deposited or cashed to access the money

• Can be deposited into a checking or savings account, or may be loaded onto a prepaid card directly
• If lost or stolen, usually can be canceled and reissued to you
• Sometimes no fee to cash "on us" checks, which are written from accounts held with the bank or credit union where you're cashing it

• Have to wait until it arrives in the mail or can be picked up, possibly delaying when you receive the money
• Requires you to take an action of depositing or cashing the check before you can use the money
• May need a bank or credit union account to cash a check without paying a fee
• May not be able to access all the funds immediately after depositing (waiting period for check to clear

Direct deposit

Money is electronically sent to your bank account, credit union account or your own prepaid card

• Reduces your risk of loss or theft if funds are sent directly to a bank or credit union account because they're protected form unauthorized transfers and other errors once deposited
• Usually available to you immediately (often on payday)
• No check-cashing or other fees to deposit money
• Many banks and credit unions waive fees for checking or savings accounts when you set up direct deposit
• Funds can usually be accessed in a variety of ways, such as by using a debit card at merchants or at ATMs, at the bank or credit union's branches, through on online bill pay service, or by personal checks
• May be able to split the deposit between checking and savings accounts, which can help you build savings

• Direct deposits made to a prepaid card may not have protections for unauthorized transfers or other errors, unlike checking and savings accounts
• Can be charged fees if you write checks, used for debt card, or make other transfers without sufficient funds in your account.
• Have to go to an ATM or get cash back at a merchant to receive cash, if there are no convenient branch locations

Payroll card

Employer loads your salary or wages onto a prearranged prepaid card where you can access the funds

• More secure than cash or checks
• Has full federal protections in case of unauthorized transfers or other errors (the same as checking and savings accounts)
• Funds can usually be accessed in a variety of ways, such as using the card at merchants or at ATMs, at the card provider's branches, through an online bill pay service and sometimes by check

• Potential service or inactivity fees, meaning you might have to pay to access your wages in certain ways (ask your employer about these)
• Have to go to an ATM or get cash back at a merchant to receive cash, if there are no convenient branch locations
• Some cards limit how many times you can access an ATM in 24 hours

Government benefits card

A government agency loads your benefits onto a prearranged prepaid card where you can access the funds

• More secure than cash or checks
• Has full federal consumer protections in case of unauthorized transfers or other errors (includes needs-tested programs administered by the federal government, like SSI)
• Funds can usually be accessed in a variety of ways, such as by using the card at merchants or at ATMs, and possibly through an online bill pay service

• Potential service or inactivity fees, meaning you might have to pay to access your benefits in certain ways (read the cardholder agreement to check for these)
• If cash access is permitted, have to go to an ATM or get cash back at a merchant to receive cash

Electronic benefits transfer (EBT) cards

A certain type of government card (replacing paper-based benefits used for needs-based programs such as Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and other programs (availability, fees and other terms vary by state and program)

• More secure than cash or checks
• For some EBT cards, funds can usually be accessed in a variety of ways, such as using the card at merchants or at ATMs, and possibly through an online bill pay service

• There may be limits on where you can use the card or what you can purchase with it
• May not have protections for returning funds taken through unauthorized transactions or other errors
• If cash access is permitted, have to go to an ATM or get cash back at a merchant to receive cash
• Some benefits can expire if they aren't used within a certain amount of time (ask if this applies to your benefit and keep track of your balance to avoid losing benefits); ask to have cash benefits sent to your bank account or your own prepaid card instead to avoid this