Paycheck by Debit Card

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I was thinking that about the check cashing companies...aren't their fees higher than banks?

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"freddieflounder101" wrote:

I was thinking that about the check cashing companies...aren't their fees higher than banks?

It can really vary a lot from one place to the next. Most charge a percentage of the check so it depends on how much the check is. Banks charge check cashing fees now also unless you have an account with them or the check is issued from their bank.

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"GloriaInTX" wrote:

It can really vary a lot from one place to the next. Most charge a percentage of the check so it depends on how much the check is. Banks charge check cashing fees now also unless you have an account with them or the check is issued from their bank.

I meant vs. a bank where you have an account.

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"GloriaInTX" wrote:

I agree with you I used to work as a cashier at a retail store where we cashed paychecks for a fee. So I saw the many people who had no bank accounts come through there every Friday to cash their checks. I am not saying it is a good thing, I am saying that it is not unusual as some people seem to think. Checking accounts aren't free either for people who don't have a lot of money to put in them. Most checking accounts require at least direct deposit or a minimum balance or they charge fees. Then there are also the overdraft fees if you are living paycheck to paycheck it is easy to make a mistake and then you are hit with a $35 fee if you go over. That is difficult to overcome if you don't have much money in the first place, and so some choose to just use cash instead.

I bank with chase. As long as I use my bankcard 6 times in a month, no fee. No minimum balance or direct deposit. Come to think of it, none of the banks I use charge a fee for my accounts.

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"ethanwinfield" wrote:

I bank with chase. As long as I use my bankcard 6 times in a month, no fee. No minimum balance or direct deposit. Come to think of it, none of the banks I use charge a fee for my accounts.

You are probably grandfathered in to your account or something. If you tried to open an account now you would be charged unless you meet one of their requirements for direct deposit or minimum balance.

https://www.chase.com/checking#!cca:ccca

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"ClairesMommy" wrote:

It seems so unusual to me. It makes me think there's a larger incentive at work as to why the debit cards are being used, and it's NOT for employee convenience.

I bet McDonald's does their corporate banking with JP Morgan and got a better deal on their banking because of this "value add" service. Smile

Anyway, I agree that it's a good thing for a company to OFFER. Many companies are now starting to offer this, and it can be a good thing for those employees that can't/don't have a bank account for whatever reason (is bad credit a reason? Possibly? Just thinking out loud) But it should only be an option - employees should have the option to get a paper check (and preferably also direct deposit) as well. I can't imagine that it's legal to force employees to pay banking fees at a bank not of their choosing. Or anyway, it wouldn't have been before we made corporations into people and gave them the vote! Blum 3

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My last job required direct deposit - which required a bank account. If Gloria is arguing that there is no such thing as free checking accounts- and that the debit cards are unacceptable because of the fees- and a physical check is unfair to those without bank accounts due to predatory fees.....really what's a corporation to do? Hand out large sums of cash? Fact is there is going to be some small fee associated with safely accessing, tracking and protecting ones money, it seems.

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"Potter75" wrote:

My last job required direct deposit - which required a bank account. If Gloria is arguing that there is no such thing as free checking accounts- and that the debit cards are unacceptable because of the fees- and a physical check is unfair to those without bank accounts due to predatory fees.....really what's a corporation to do? Hand out large sums of cash? Fact is there is going to be some small fee associated with safely accessing, tracking and protecting ones money, it seems.

I never said there are no free checking accounts, I said they have requirements such as direct deposit or a minimum balance to be free. I don't think that debit cards are unacceptable, I just think that employees should have a choice to be able to get a paper check if that is what they want. Some people probably like having the debit cards, this woman obviously didn't. You are right there is going to be some fee involved most of the time but I just think the employee should be able to make that choice in how they want their money handled.

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"GloriaInTX" wrote:

I just think the employee should be able to make that choice in how they want their money handled.

I agree. Even if you can't get free checking or ATM fees or whatever anywhere, I still think that the paycheck is the employee's money, and therefore it's her right to decide that she wants to pay her banking fees to bank A over bank B (or to a skeezy check cashing place, or whatever.)

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I don't know- I didn't have a choice about having direct deposit. Never thought about suing. Again- if this practice is illegal it should be stopped- but at some point I understand a large corporation not being able to offer a menu of payment choices - they are an employer not a restaurant.

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Well I'm not arguing that employers have to offer every payment method under the sun, like we should be able to ask for BitCoins or peanuts or something. Smile I would say having access to a paper check and/or direct deposit is pretty standard though, so it doesn't seem like an outrageous demand.

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I don't have a problem with the "paycheck" being loaded to a card in theory, although I'm curious how one would pay rent with it? We already have various welfare program benefits being loaded onto cards that people can use pretty much anywhere that can take a debit card, and they can withdraw cash at many banks & credit unions. My problem is the fees associated with the particular debit card in the OP. Many of us can avoid bank fees by maintaining a minimum balance, using debit cards or bill pay for enough transactions per month, having a loan through the same bank, having direc6t deposit, joining a credit union, etc. Just because people work at McDonalds doesn't mean they should have to pay fees to access their pay.

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"Spacers" wrote:

I don't have a problem with the "paycheck" being loaded to a card in theory, although I'm curious how one would pay rent with it? We already have various welfare program benefits being loaded onto cards that people can use pretty much anywhere that can take a debit card, and they can withdraw cash at many banks & credit unions. My problem is the fees associated with the particular debit card in the OP. Many of us can avoid bank fees by maintaining a minimum balance, using debit cards or bill pay for enough transactions per month, having a loan through the same bank, having direc6t deposit, joining a credit union, etc. Just because people work at McDonalds doesn't mean they should have to pay fees to access their pay.

Actually I'm pretty sure most apartment complexes accept credit cards now, though it might be harder if you rent from a private individual or something. I agree with you about the fees. The problem isn't really about the debit card it is about the fees they are charging them to get their money back out.

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