What are the benefits? What are the drawbacks?
Make sure that they are legal in your state. Check to see how the fees work. Cards that charge fees are maybe not legal in CA for example. Not all states allow forced use of cards.
Past that, I really like direct deposit. Everything else is harder. The only good thing I know about prepaid cards is that they are not checks or cash. I do not like US Mail reliability, meaning I do not like checks. I do not like handing checks out. I do not like supervisors handing checks out Cash can be interesting. We had an employee who was an A**H*** about pretty much everything. With Very Senior Management's approval we started paying him with pennies (no wrappers).
Payroll cards provide significant cost savings for employers and can be used in several ways, including regular pay, reimbursing expenses, bonus and reward payments, paying remote employees, termination payments, payroll adjustments, commission payments, or other one-time payments.
As with a standard debit card, there is always the risk that an employee with lose her debit card. Some stores do not always check for identification when someone comes in to process a credit card transaction. In this case, if someone uses a stolen card and chooses to process his payment as a credit card, employer and employee lose that money. The employer has to work to recover those funds from the merchant via his payroll administration company, and the employee may have to wait days after payday to access his pay.