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Pay Cards

Sharon McKnight SPHRSharon McKnight SPHR 737 Posts
edited August 2015 in Compensation Vote Up0Vote Down
I read an article about how McDonald's has been sued because of its pay cards (see below) and it made me wonder if many employers use pay cards and how it's worked out for them.

So, if your organization utilizes pay cards, please let me know about your experiences. What kind of cards do you use? Have your employees had issues with them? Are you for or against using them?

Thanks.

Sharon http://money.msn.com/business-news/article.aspx?feed=AP&date=20130617&id=16603642
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Comments

  • 6 Comments sorted by Votes Date Added
  • NaeNae55NaeNae55 3,243 Posts
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    In this state if you use a paycard you are required by law to allow employees at least one fee free withdrawal. So they can use the card to get cash or deposit the funds into their account. If they use it more than that, they are subject to reasonable fees.

    Prior to this law, employees who received a paycheck and did not have bank accounts were subject to steep fees at check cashing businesses. Now those employees can go to a local bank to get their cash and the employer pays any fees.
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  • bkailiulibkailiuli 33 Posts
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    We just started using pay cards with one of our companies a month ago. So far it has worked great. The employees can withdraw their whole net pay from any bank that deals with Visa with no charge. They can use their cards on debit transactions and get cash back with no charge as many times they want, and also one ATM per pay with no charge.

    It is great to use for terms or missed hours on a pay check because we can instant load the cards. Each store has an inventory of cards for this purpose.

    We use the ADP pay cards since we process our payroll with them. They did give us a fabulous deal.

    Beth
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  • sonnysonny 2,117 Posts
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    We don't use them, but our pension administrators recently implemented. No more paper checks (unless you are incarcerated :)

    Some of our more chronologically gifted retirees were not happy.
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  • tkessler_blr_comtkessler_blr_com 4 Posts
    edited August 2015 PMVote Up0Vote Down
    http://nyti.ms/16JAQYG

    Here is a link to an article about pay cards in today's NY Times. tk
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  • bkailiulibkailiuli 33 Posts
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    Wow, how do they get away with that. Our employees can go to any VISA bank and withdraw their whole pay check without a fee. Their first ATM withdrawal each pay is free. They can use their cards for debit transactions and get cash back without fees for as many times as they want. They can also log on to the pay card site, set up their account and electronically pay bills with no fees.

    Employees can also receive daily texts with their balance or log on to the website and see all their transactions with no fees.
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  • NaeNae55NaeNae55 3,243 Posts
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    There really shouldn't be any fee for using a paycard once or twice per pay period. However, the article makes it sound like some of the employees use the services alot and get charged for it. If they take the card to the bank to deposit the funds in their personal checking account and get charged then that is outrageous. If they take a little here and a little there, then it is their choice. Remember, if they got a check and went to a check cashing facility they would be charged more than $2-3.
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