Everyone (except consumer advocates like us) seems to love prepaid debit cards. You can get student loan fundage on them, unemployment benefits, and even federal and state tax refunds. And now they’re handling your paycheck. Christopher just took a job as a pizza delivery driver for a major chain, and he has only one option for receiving his pay (other than tips): a prepaid debit card. He doesn’t like it. [More]
Walmart, our nation’s largest employer, has eliminated paper paychecks. Now employees can choose to sign up for direct deposit or have their wages added to a pre-paid debit card. ABCNews says that only about half of Walmart’s employees use direct deposit — the rest either prefer a paper paycheck or, in some cases, don’t have a bank account.
New tax laws designed to boost the economy by giving you a bit more cash in your pocket might lead to problems for you next year if you’re in a dual-income household. The new payroll tax tables mean you could end up withholding too little without even knowing it and, though you’re welcome to take that long-awaited trip up the Zambezi, you probably won’t enjoy writing a check to the IRS come April 2010.
Remember our post on student loan debit cards? The cards are pitched as a great convenience, or less expensive to distribute than paper checks, or more secure, when in reality they’re germy with hidden fees that slowly nickel and dime your balance. Turns out, GameStop uses a similar system to pay its employees.