Charged Fees to Access wages

[Munchkin03]

[QUOTE=AGDee;2227905]

There are a lot of people who get paper checks who go to the local convenience stores to cash them rather than deposit them into an account. They pay a fee for that and don't think twice about it. If they had a checking account, they'd pay a fee for that account too.

[\QUOTE]

It's expensive to be poor in America. I've always had free checking, but I've always had direct deposit, kept a minimum balance, or been a member of a credit union (with my parents as references). A lot of people do check cashing places because they can't get a bank account. It's tough and the debit card payment is just another form of that.

[Cheerio]

Last holiday season, the Salvation Army in our area used this type of card for paid bell ringers. More people than they could hire signed-up for the employment opportunity.

[PiKA2001]

This is the first ive heard of this payroll option. Does anyone know why an employer would prefer to pay their employees this way? It seems like it'd be more expensive than traditional payroll services but I'm probably wrong.

[AlphaFrog]

Originally Posted by PiKA2001

This is the first ive heard of this payroll option. Does anyone know why an employer would prefer to pay their employees this way? It seems like it'd be more expensive than traditional payroll services but I'm probably wrong.

We have the option to pay by Pay card but the employees have to provide the card for themselves. We prefer that the employees are on some stort of direct deposit whether it be pay card or traditional checking. No checks to sign, and we mail the checks (or stubs for direct deposit), so we don't have to worry about the employees receiving them on time.

Pay cards work the same way as direct deposit is far is payroll fees and such.

[thetalady]

Pay cards are used for lots of reasons.... companies can simply upload the wages to the card. No printing. No mailing. No checks getting lost or being stolen & cashed by someone else, etc. Cuts down on a lot of problems, but it does create others. Many companies have tried to go entirely to direct deposit, but a lot of people (maybe working here undocumented or those in poverty) simply do not have checking accounts.

[AlphaFrog]

Originally Posted by thetalady

Pay cards are used for lots of reasons.... companies can simply upload the wages to the card. No printing. No mailing. No checks getting lost or being stolen & cashed by someone else, etc. Cuts down on a lot of problems, but it does create others. Many companies have tried to go entirely to direct deposit, but a lot of people (maybe working here undocumented or those in poverty) simply do not have checking accounts.

Undocumented people can get paycards. The ones you pick up at the retail stores don't require personal information.

In North Carolina, you can legally require everyone on your payroll to be direct deposit. I'm sure there are other states as well, but most of my HR experience is from NC.

[sigmadiva]

Originally Posted by thetalady

Pay cards are used for lots of reasons.... a lot of people (maybe working here undocumented or those in poverty) simply do not have checking accounts.

I only have a personal working knowledge of the banking industry, but I *thought* it was easier to get an account at a credit union vs. a bank.

Also, personally I'm all for direct deposit - faster, easier to manage, and safer, IMO.

[knight_shadow]

Originally Posted by sigmadiva

I only have a personal working knowledge of the banking industry, but I *thought* it was easier to get an account at a credit union vs. a bank.

Also, personally I'm all for direct deposit - faster, easier to manage, and safer, IMO.

You have to be a "member" of a certain group in order to use a CU, though (ex. teacher's union, service member, etc). It may be easier than getting accounts at the big banks, but not necessarily easy. Also, many people who choose not to get accounts do so because they don't trust financial institutions.

I have always seen the option to get money on a prepaid card, but never a requirement.

[sigmadiva]

Originally Posted by knight_shadow

You have to be a "member" of a certain group in order to use a CU, though (ex. teacher's union, service member, etc). It may be easier than getting accounts at the big banks, but not necessarily easy. Also, many people who choose not to get accounts do so because they don't trust financial institutions.

True and true.

I have always seen the option to get money on a prepaid card, but never a requirement.

I didn't know about getting your salary on a prepaid card until this thread.

[knight_shadow]

Originally Posted by sigmadiva

I didn't know about getting your salary on a prepaid card until this thread.

Yep. After all the stuff that happened with banks recently, there was a huge increase in the number of folks using prepaid debit cards. I still find it weird that a company would force someone to use them, though.

[Titchou]

the IRS also uses these cards for refunds to people who do not have checking/savings accounts and for SS recipients without them as well. It's a huge savings to not send paper checks. Our FHC also requires all the House Corp employees to have a checking/savings account or use a similar debit card for payroll.

[DubaiSis]

For those without a bank account, this is robbery, but at least it's not also the rape that the check cashing places are. I wonder if these accounts can help a person establish credit. I've worked with people who got paid in cash and spent it all by Monday. For that person at least his money isnt cash in his pocket waiting to get mugged. Still, there should be an alternative.