Most prepaid debit cards do not have the ability to have another person topping up the debit card.  It is usually only the card holder who is allowed to increase their debit card balance.  However there is an exception with employers and this is known as direct deposit.

The reason why there are restrictions on topping up debit cards is that it used to be a common way to enable money laundering.  As debit cards can be used anywhere in the world that a VISA or MasterCard symbol is displayed it used to be quite common for one person to load up a prepaid debit card and send it to another person in another country and this could be used to pay for illegal goods or to finance terrorism.

It is still possible to buy a prepaid debit card for someone else, but there are restrictions.  It is virtually impossible to top up another person’s debit card.

However this was not practical for many employees.  For many people the high cost of transaction accounts has meant that prepaid debit cards are a good alternative.  So a person has a prepaid debit card and they can use the card to pay for goods in most places, including on the internet, and to withdraw cash at ATMs.  However there are no holding fees and as there are no cheques or EFTPOS transactions then there are fewer transaction fees (there may still be transaction fees).

Direct deposit is a way for employers to be able to pay in to debit cards.  This needs to have an authorisation that is arranged by the payroll department of the firm.  Most payroll departments are used to dealing with bank forms as they will use direct deposit to pay into bank accounts.  In the same way the direct deposit form for the debit card is not much different.

The issuing bank will be able to give a direct deposit form.  It will also often be on the internet.

When this form is completed then the direct deposit can start.  It is usually a good idea to ask the payroll department to advance a dollar into the account to test that the account is receiving the money.  If this is not possible due to rules within the payroll department then it is wise to keep a close eye on the card balance when the first payment is due from the employer.