⏰ Est. reading time: 5 mins

💡 What you’ll learn:

• How per diem cards work
• The benefits of per diem cards
• Industry use cases for per diem cards‍

It’s no secret that today’s workforce has come to expect fast, flexible pay. In a recent survey, 83% of employees want to access their pay at the end of each day. And with 65% of consumers currently living paycheck to paycheck, unexpected expenses can easily derail their finances. Unpredictable cash flow or payment delays can exacerbate their financial insecurity, putting them on even shakier ground. 

Providing fast access to cash can help—and one way to achieve this is through per diem cards. These cards can provide workers immediate access to per diem pay, but they can also be used to send workers their regular wages, stipends, and any other type of payment.

Keep reading to explore how per diem cards work, plus their benefits for businesses and workers.

What Is a Per Diem Card? 

A per diem card is a type of paycard that gives employees easy access to expense allowances or regular wages. Think of a construction crew headed out to a job site in a different state. Their company will cover their meals and other expenses each day. Instead of making employees pay out of pocket and expense these costs later; or paying in arrears on the next paycheck, per diem cards can be used to instantly push funds to workers.

They make life easier for everyone by getting rid of the need for cash advances and reducing paperwork for reimbursements or payroll.

Unlike traditional corporate charge cards, per diem cards focus specifically on daily allowances for meals, lodging, and incidental expenses while employees are traveling or working away from home.

How Per Diem Cards Work

Per diem cards offer simplified payment solutions for expense handling through a modern approach. The set-up process is simple:

• Find a per diem card provider,
• Connect the per diem card system to your existing payroll software,
• Distribute the per diem cards to your workers, and
• Direct employees sign up; their accounts are verified and ready to receive payments. 

Per diem cards provide real-time access to funds, meaning workers don’t have to wait for their regular paycheck to be reimbursed for expenses. 

Industries That Use Per Diem Cards

Here’s how different industries use per diem cards:

• Transportation and logistics: Truck drivers and delivery workers are constantly on the move. With per diem cards, companies can give them a set daily amount to cover food and travel expenses.
  
• Construction: Construction companies send crews to different job sites, sometimes far from home. Per diem cards make it easy to pay daily wages and any work-related costs like meals, lodging, or local transport. There’s no need to deal with messy reimbursements or give out cash in advance or deal with the cost or hassle of having to overnight a check.
  
• Consulting and professional services: A per diem card can be used for meals, taxis, rental cars, and day-to-day official travel expenses for consultants. They don’t have to wait weeks for reimbursement, making it an efficient way to streamline payroll processes.
  
• Healthcare: Travel nurses and other temporary healthcare workers constantly relocate for short-term assignments. With per diem cards, hospitals and staffing agencies can cover their meals and lodging costs easily.
  

• Field services: Maintenance crews, installation technicians, and service professionals work off-site or in remote areas. A per diem card allows them to easily manage daily expenses like meals or transportation without needing to submit receipts or wait for reimbursement. It also gives them immediate access to wages earned, so they have cash flow accessibility despite being in the field. 

Benefits of Per Diem Cards For Companies and Workers 

Per diem cards can help your company save time and money on outdated payroll methods like paper checks and cash, while providing faster access to wages and reimbursements for your workforce.  

Business Benefits 

Per diem cards make expense management more efficient and cost-effective for your business:

• Lower administrative costs. Direct funding through per diem cards eliminates the need to rely on outdated methods like costly paper checks or fee-laden paycards, allowing you to save money on each payment cycle. 
• Less administrative overhead. Working with a payments platform that can send per diem payments helps streamline expense operations by automating the funding process.
• Better hiring and retention. Today’s workforce wants fast access to their earnings. When you provide a payments solution that can deliver that, you’ll be able to win talent from other companies or platforms. 
• Supporting compliance. Reduce tax and compliance risks as per diem cards can help distinguish non-taxable and taxable wages.

Worker Benefits

It's not just your business that thrives when you modernize and streamline per diem pay; your workforce benefits, too.

• More control over their expenses. Employees can access their daily allowance immediately after it’s approved instead of waiting for reimbursement. They can also manage business expenses more effectively since they’re all in one place.
• No hidden fees. Well-designed per diem systems offer transparent fee structures, fee-free withdrawals at select ATMs, and no minimum balance requirements. This helps workers budget more accurately.
• Higher job satisfaction. When employees avoid the stress of fronting money for business expenses, they feel more supported and engaged at work.
• More flexibility. Funds loaded onto the card can be used directly or transferred to another bank account. 

Types of Businesses That Benefit from Per Diem Cards

Let’s explore which businesses get the most out of per diem cards:

• Companies with a mobile workforce. Businesses with sales people, drivers, or field technicians on the move use per diem cards for daily travel costs like meals, fuel, and lodging, without relying on cash or reimbursements.
• Businesses with frequent employee travel requirements. Organizations that send staff to conferences, client visits, or remote locations simplify expense handling with per diem cards. Employees get financial flexibility, while finance teams avoid juggling multiple expense reports.
• Organizations looking to reduce administrative overhead. Per diem cards streamline travel expenses, reduce manual approvals, and remove the need for detailed receipt tracking.
• Companies with hourly or shift workers. Restaurants, retail stores, and service businesses use per diem cards to offer daily wage access as an employee benefit. Workers can get paid after each shift, while also having funds available for work-related expenses like uniforms or transportation.

How Branch Compares to Competitor Per Diem Card Solutions

Whether you’re shopping around for a per diem card for your workforce or you’re looking to make a switch, it pays to do your research. 

While both Branch and some of our competitors offer a fast, digital way to pay your workers, there are a few key differences between our per diem solutions. Here’s a high-level overview:

If you’re looking for a way to send per diem pay to your workers that’s inclusive of workers with limited documentation or banking history; or if you simply want an operationally efficient offering with fee-free options, Branch’s per diem card is for you.

How to Implement Per Diem Cards

Upgrading your payroll processes doesn’t have to be complicated. With Branch, you can easily onboard and send per diem payments to workers on Day one. Here’s a quick rundown of how set-up works:

1. Order free Branch-branded debit cards*, or customize the design of the cards to include your company logo.
2. Distribute cards to your workers, whether they’re W-2 employees or 1099 contractors.
3. Quickly push per diem pay to your workers’ accounts. Workers can access these payments on day one.
4. You can also send wages, bonuses, or any other earnings to your workers’ accounts, any time you wish—nights, weekends, and holidays included. 

Make Per Diem Payments a Breeze with Branch

For any business sending per diem payments, Branch Cards make it easier for you and your workers to achieve a fast, seamless experience. Businesses looking for a better per diem solution can explore flexible options with the Branch Card. With easy set-up, responsive customer support in English and Spanish, and no cost to your company, you can deploy a per diem solution that will help you streamline operations and attract and retain more talent. 

Learn more about Branch Cards today. 

‍

*Branch is not a bank. Banking Services provided by Evolve Bank & Trust, Member FDIC. FDIC insurance only applies for eligible accounts should the bank holding your funds fail. The Branch Mastercard Debit Card is issued by Evolve Bank & Trust pursuant to a license from Mastercard and may be used everywhere Mastercard debit cards are accepted.

‍