What Is Earned Wage Access?

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What is earned wage access?
How does earned wage access work?
- Download the app and link a bank account. Download the EWA app that partners with your employer. The app will require you to link a bank account or debit card where it can deposit the money. The service is usually tied to your employer’s payroll system and may show how much of your paycheck you’ve earned at the end of each payday.
- Request part of your paycheck. Apps typically limit the amount you can request each day or pay period. Half of your earned wages is a common limit. Your employer may set its own restrictions, too.
- Agree to the terms, including potential fees. When you request an advance, the app will tell you how much you can receive and when, and disclose any transfer fees. If you agree, the funds are usually deposited into your account within one to three days. Fees may be subtracted from the advance before you get it or withdrawn with repayment.
- Get the rest of your paycheck on payday. On your next payday, any amount you received in advance will be deducted from your paycheck.
Earned wage access example
How to qualify for an earned wage access service
- Work for a company that offers earned wage access as a benefit.
- Download the EWA app that your employer works with.
- Link a bank account or debit card where the funds can be sent.
- Set up direct deposit, in some cases, to either qualify or lower transfer fees.
Popular earned wage access companies
- Payactiv lets employees access up to 50% of their daily net earnings on all work days. Transfers usually take one to three business days, but employees can transfer funds immediately for no fee or a fee of $2.49 or $3.49, depending on how you receive the funds and whether you have direct deposit set up.
- DailyPay decides how much of your earnings you can have deposited when you make a request. Users can get their funds instantly for a fee up to $3.99 or on the next business day for free.
- One@Work lets employees access up to 50% of their paycheck and says users can receive funds instantly for a fee. If users don’t want to pay the fee, transfers take one business day, according to the company.
Summary of earned wage access apps
EWA app | Deposit amount | Fees | Time to fund |
---|---|---|---|
Payactiv | Up to 50% of your daily net earnings. | Disbursement fee: $0 to $3.49. | One to three business days. |
DailyPay | Up to 100% of your net earned income, with a daily maximum of five transfers or $1,000. | Fast-funding fee: $0 to $3.99. Amount depends on the requested speed. | One business day. |
One@Work | Varies by employer, typically up to 50% of your next paycheck. | Fast-funding fee: Amount disclosed when an advance is requested. | One business day. |
Earned wage access pros and cons
Pros
- Fast access to cash. You can usually access part of your paycheck within days after you request it — or instantly, in some cases — making this an option for emergency expenses.
- Low or no fees. If you can wait a day or two for the funds, this is a no-fee option. If you choose an instant transfer, fees are a couple of dollars, which is still much lower than fees on payday and other high-interest loans.
- No credit or income requirements. While other borrowing options like credit cards and personal loans require a credit check and application, EWA services don’t check credit.
Cons
- A smaller paycheck. Taking earnings early means a smaller paycheck on payday. If you have bills set to autopay, your paycheck could come up too short to pay them.
- A new habit. EWA is a helpful option in an emergency, but consumer advocates say regularly taking money from your paycheck before payday could become an unsustainable habit.
- Possible overdraft fees. Though it’s unlikely that an employer-sponsored EWA service will directly cause an overdraft fee, if your smaller biweekly paycheck isn’t enough to cover other regular expenses, you may unintentionally overdraw your bank account.
Earned wage access vs. cash advance apps
Similarities
Differences
Popular cash advance apps
Loan app | Loan amount | Funding time | Fast-funding fee | Other fees |
---|---|---|---|---|
| $25 to $250. | Up to three days. | $0.99 to $3.99. | $8.99 or $14.99 monthly subscription fee. |
| $20 to $500. | Up to 24 hours. | $2. | None. |
| $50 to $750. | Up to three days. | Starts at $4.99 for $50. | None. |
| Up to $500. | Instant to Dave checking account. | 1.5% of advance amount (applies to external debit card transfers only). |
|
| Up to $750. | Up to two business days. | $2.99 to $5.99. | None. |
| $10-$400. | Up to five days. | $1 to $8 up to $299.99, then 3% of advance amount. | Subscription fee: $8 per month. |
| Up to $200 (higher amounts may be available for some users). | Up to three business days. | $1.49 to $19.99. | None. |
| Up to $500 (higher amounts may be available for some users). | Up to five business days. | $.49 to $8.99. | None. |
| Up to $625. | Up to 20 minutes. | 1.99% of advance amount (applies to external debit card transfers only). |
|
| Up to $500. | Instant. | None. | Advance fee: $1.60 to $40. |
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