Though it’s been a point of concern with employee-rights advocates for years, the use of prepaid debit cards as a substitute for traditional payroll checks is finally getting attention from the powers that be, with the New York state attorney general’s office investigating the practice at some of the nation’s largest employers. [More]
The McDonald’s franchisees who were sued by a former employee after she was forced to accept her wages on a prepaid debit card have had a sudden change of heart, saying they will now be giving workers at their 16 McDonald’s franchises in Pennsylvania the option of receiving their pay on good old-fashioned paycheck or direct-deposit. [More]
Here’s Why Employers & Banks Love Putting Wages On Prepaid Debit Cards, And Why Employees Keep Their Pay In Shoeboxes
The recent lawsuit filed by a former McDonald’s worker against her employers has drawn a lot of national attention to issue of paying wages on prepaid debit cards, with a some people not understanding why a business would push these cards over traditional payment methords, or why an employee would have such a big problem with the cards. [More]
The automated teller machine is now ubiquitous and can perform most of the functions you would visit a bank branch for: withdrawing cash, transferring money, making deposits. One thing that has really never changed about ATMs is what they dispense. Cash is cash: untraceable, lightweight, and nobody charges you any fees to use it. How boring and unprofitable. [More]
McDonald’s HQ Says It Has Nothing To Do With Franchisee That Forces Employees To Get Paid Via Debit Card
People around the country have taken an interest in the story of a former McDonald’s employee who recently filed a lawsuit because she was told the only way she could receive her wages was via a prepaid debit card. Meanwhile, the folks at the McDonald’s corporate office are trying to put as much of a buffer between themselves and the franchisees running the store in question. [More]
Earlier this year, a woman in Pennsylvania was expecting to get her first paycheck from her new job at McDonald’s, but rather than an envelope containing cash or a check, she received a prepaid debit card from Chase. This did not go over well. [More]
A few weeks back, we told you about the new photo ID cards being issued by the city of Oakland that could also be used as prepaid debit cards. We also told you about how these debit cards came loaded with sky-high fees. Now it looks like the city has decided to ditch some of these exorbitant charges. [More]
Yesterday we told you about the sky-high fees associated with the combination photo ID/prepaid debit card being issued by the city of Oakland. Now comes a report that Chicago-area residents who choose to opt in to the prepaid debit option on their transit cards will also see their cash eroded by fees.
The city of Oakland has begun offering ID cards that can also double as prepaid debit cards. Not inherently a bad idea, except for the fact that these cards come loaded with fees that will chisel away at the user’s funds. [More]
Cody had a Visa gift card, and he used it up to buy a grill, ordering online from Lowe’s for in-store pickup. He didn’t say where the gift card came from: maybe it was a present or he received it from a rebate. It doesn’t really matter. He used it for only part of his purchase. The problem came when he forgot to pick up the grill and other items that he bought for almost a month. The store where he was supposed to pick it up no longer had it in stock, but they couldn’t transfer the purchase to a different store. He needed to get a refund for the grill that he had ordered online, then buy it over again at another store. Easy enough…if he hadn’t used up the prepaid card and then tossed it out. [More]
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.
The Federal Reserve says that prepaid debit cards are the fastest-growing non-cash way to pay. All that competition to get customers has led to an overall decrease in the fees associated with these cards, but a new study finds the price points for these fees are all over the place, and that companies are not always up front about disclosing them.
Sarah bought a Green Dot Visa card at Walmart so she could do some shopping online. Her experience is a great illustration of why this site isn’t a huge fan of prepaid debit cards: she put down cash for a card that had erroneous address information even though she had carefully followed all directions and registered the card. She ended up with most of the card’s balance tied up in transactions she couldn’t complete.
This tax season, South Carolina taxpayers will have three options for getting their tax refunds: direct deposit, paper check, or a prepaid debit card from Bank of America. While this last option might seem like a good idea to some, they could be paying for the convenience.
Poor Suze Orman. All she was trying to do was launch a prepaid debit card that charges slightly fewer exorbitant fees than the competition, and sort of reports your spending habits to credit bureaus but not really. Then a whole bunch of “idiot” personal finance bloggers began ganging up on her on Twitter, and she had no choice but to lash out and remind them that they’re not real journalists.
Reader Andy noticed this sign in near the breakfast foods in a local CVS. It instructs customers to check the expiration dates of the items they choose before taking them up to the cash register. It’s an innovative idea: maybe they’re aiming to crowdsource stock rotation.