BEWARE of pre-paid payroll cards

[karadinart]

Many companies are starting to pay employees with pre-paid cards instead of checks or direct deposit (because it's cheaper for the company) BUT these cards are loaded with fees, fees to make a purchase, fees to make an ATM withdrawl, fees if you don't use the card within 90 days! Some of these fees add up to $30 dollars a month!

And, works no longer have a pay stub, which gives them a record of hours, or overtime, or vacation, or tax deduction information etc. which leads to the growing problem of wage theft.

Some of the companies brand these cards, and they are making the money on these fees, particularly ATM fees.

So, if this is ever offered in your place of work, don't take it! Alas, its a growing trend and sometimes you as an employee don't have a choice!

http://www.nbcnews.com/id/46979745/vp/52604296#52604296

Comments

[browngirl.livejournal.com]

Because the Company Store is absolutely what we need a return of. Feh.

[karadin.livejournal.com]

Exactly! Let's all party like it's 1899

[celtic2pict.livejournal.com]

We complained bitterly when cash pay was phased out years ago and direct deposit into our bank accounts was bought in (the banks get use of our money to play the money market but we have to pay for them to store and issue it)! But this sounds bad, really bad. I hope they don't bring it in over here (although I know some companies issue pre-paid cards as Xmas presents, bonuses etc - but that is over and above the wage we earn).

[karadin.livejournal.com]

I'd still probably transfer all the money on a bonus card to my bank, because I don't have to pay any fees (it's a credit union) or cash it out, I can't believe they have charges if you don't use the money within a certain amount of days (or a 1$ a purchase, wtf)

[tanfouk.livejournal.com]

I frankly don't believe that it's cheaper for the companies than direct deposit. It's all about the kickbacks.