PaychekPLUS!EliteVisa payroll card ????

[Gewehr-Guy]

My high school age daughter went back to work at McDonalds for the summer, and instead of her pay check being directly deposited into her bank account like last year, they hand her this debit card thing. Is this a common way to pay wages now, or is McDonalds to broke to pay all the wages up front. Or do they do this so they can get financial kickbacks from the card company while spying on my daughters spending habits?

My daughter and I were discussing why they would pay her this way, when they could more easily just do the direct deposit. I think we are about ready to experience a credit crisis, and these schemes are buying the companies a little more time.

[Winger Ed.]

Interesting. I'd be curious to see how it works out.

As a company, McDonalds has always been out front with embracing new technology, especially electronic type stuff.

[Scrounge]

My high school age daughter went back to work at McDonalds for the summer, and instead of her pay check being directly deposited into her bank account like last year, they hand her this debit card thing. Is this a common way to pay wages now, or is McDonalds to broke to pay all the wages up front. Or do they do this so they can get financial kickbacks from the card company while spying on my daughters spending habits?

My daughter and I were discussing why they would pay her this way, when they could more easily just do the direct deposit. I think we are about ready to experience a credit crisis, and these schemes are buying the companies a little more time.

A lot of business and governments are using debit cards like this to pay people they own money to. Your daughter should be able to get them to direct-deposit into her bank account. It is actually easier for them to do the debit card thing, because they don't have to process the paperwork themselves. My state also does this for people who don't have a checking account and are due income tax refunds. IMHO, it's a PITA.

[pcolapaddler]

I don't think there is anything nefarious here. The card company could probably track and sell info gleaned from the use of the card.

From the perspective of the business, they have one institution with which to deal for payroll rather than hundreds of different banks, credit unions, etc.

I thought that some/many McD's were privately owned, paying a fee for the McD franchise, etc. If that is the case, it could be a local decision rather than corporate.

Sent from my SM-G935U using Tapatalk

[dangitgriff]

I don’t understand. Is this card linked to a bank of the McD’s choosing? How do you deposit funds into your own bank’s account? Seems like an unorthodox approach to the tried and true e-pay deposit/direct deposit.
You are correct in wondering if a credit crisis is on our horizon. We will get that, and much worse in the months and years ahead, thanks to the Federal Reserve and their inflationary monetary policy. Insolvent Uncle Sam can’t survive the higher interest rates that are coming with the amount of debt he’s accrued.
R/Griff

[NyFirefighter357]

[QUOTE= My state also does this for people who don't have a checking accounts[/QUOTE]


This is the reason, across the country they hire many minorities, who for one reason or another don't have bank accounts. They then have to go to a check cashing place and in theory loose another percentage of their small check to what is often refereed to as "predictory check cashing institution"
This is all part of the minorities can't get ID's or bank accounts.

It is also much cheaper to give a debit card to someone and direct deposit money to it than all the processing or printing & delivering checks is the digital age.

https://www.thebalancecareers.com/wh...-cards-2062769

What Employees Should Know About Payroll Debit Cards

By Alison Doyle
Alison Doyle headshot
Updated September 09, 2019

What's a payroll debit card and how do you get paid with one? A number of companies are offering employees this form of payment by providing them with a payroll card instead of direct depositing their pay or giving them or a paper check.
What Payroll Debit Cards Are

Each pay period, these cards (which are issued by the employer) are automatically loaded with the employee's paycheck. The cards can be used like debit cards; the employee can use the card to make purchases, receive cash back from purchases, and withdraw money from an ATM. Some cards even allow employees to pay bills directly with the card.

Many large companies, particularly those with a number of hourly workers, have begun offering payroll debit cards as a form of payment.

Walmart, Taco Bell, Walgreens, and some McDonald's franchises, for example, have begun offering payroll debit cards. Some public-sector employers are even offering payroll debit cards as a way for employees to receive federal benefits like disability and medical leave.
Benefits of Payroll Debit Cards

There are a number of benefits to payroll debit cards, for both the employer and the employee. Employers, for example, save money by not issuing paper checks to employees. Large companies with many employees can save thousands of dollars this way.

Quick Delivery: For employees, payroll debit cards provide dependable delivery of their paychecks. Employees do not have to come into the office to pick up their paycheck or make a trip to the bank or check-cashing store. They also do not need to have a bank account in order to use a payroll debit card.
Reliability: Employees with a debit card do not need to carry around lots of cash, which could be stolen. If an employee's card is stolen or lost, most companies offer fraud protection and will give the employee a new card.
Flexibility: Employees can typically load salaries from multiple employers onto the card, and even take the card with them when they switch jobs.
No Need for a Bank Account: Over 8 million households are “unbanked,” meaning that they do not have a bank account, according to a 2017 survey by the Federal Deposit Insurance Corporation. These employees cannot participate in direct deposit options for payment. Thus, these employees typically have to rely on check-cashing services to cash their paychecks, which can be expensive.
Privacy of Purchase: The company that issues the card, not the cardholder's employer, will track what the employee spends.

The Drawbacks to Payroll Debit Cards

Payroll debit cards appear to be a win-win situation: the employer saves money by not issuing checks, and the employee receives a reliable payment that she can use in a variety of ways. However, there are a number of potential drawbacks to these cards.

The biggest issue is the hidden fees. Some providers charge cardholders for common activities such as receiving paper statements, over-drafting, replacing cards, transferring money to another account, making withdrawals at most ATMs, and even not using the card for a period of time. For hourly and part-time employees, these income-reducing fees can add up quickly.
What to Do If You Want to Opt-Out

When deciding whether or not you want to participate in your employer's payroll debit card plan, look closely at the specific plan your company is offering. Are there a number of fees surrounding the use of the card? Is there another payment plan that would be more convenient for you? If so, you might choose to opt out of the debit card plan.

Most employees who do not want to be paid via payroll debit card can simply opt to select a different payment method, such as a paycheck or direct deposit. However, some employers have mandated the use of payroll cards, leading to legal issues. An employee at a McDonald's sued the franchise for forcing her to use a payroll card, arguing that she should be given other options.

Some states allow employers to forgo paper checks in exchange for direct deposit or payroll cards, but other states are less clear about what payment options employers must offer their employees.

You should check with your state's Department of Labor office for the latest laws and regulations.

If you want to opt out of your company's payroll debit card plan, but are not given the option to do so, you should first try discussing the issue with your employer (if possible, through the human resources department).

If this does not work, you should contact the Consumer Financial Protection Bureau or your state's attorney general. Whether you decide to use or opt out of a payroll debit plan, be sure to thoroughly look into your company's payroll debit plan and assess your own financial situation before making a decision.
The Bottom Line

Payroll Debit Cards Are Pre-Loaded With an Employee’s Pay:
Workers can use the card to buy goods and services, get cash back, or withdraw money from an ATM.

There Are Many Bonuses to These Debit Cards:
The plusses include flexibility, reliability, privacy, and the ability to get paid without having a bank account or using expensive check-cashing services.

However, There’s One Big Drawback:
Some providers charge hidden fees for options like receiving paper statements or making withdrawals.

[richhodg66]

My college age son worked as a server at Olive Garden for a few years and that's how they payed him. This was a few years ago. The kids I know who work fast food have mentioned this too, apparently, this is how it's done now. Sounded weird to me as well.

[William Yanda]

From Dec, "19 through Feb., I worked at Amazon. Because I didn't want to give them my bank acct. for direct deposit, they gave me a Wisely CC. Worked ok for me.

[Gewehr-Guy]

NyFirefighter, thanks for that explanation, makes sense now to me why they use this system, but I still don't like the direction this monetary system is going. To me it seems like the employer stores your wages in his pocket , until you actually spend it in small amounts. I would rather let the small bank or credit union have it, so it could maybe be of some benefit to the local community. I also don't like the fees they extract from you, to use your money.

The use of credit cards, debit cards, don't teach people good spending or saving habits, as they really don't have a proportional view of their rate of spending, like they would get when pulling bills out of a wallet. To me it would be like driving around in a truck with no fuel gauge.

[rancher1913]

watch the rules, some if you use an atm will charge a fee, some if you do anything other than treat it like a credit card will charge a fee.

[jdfoxinc]

666 or a cashless society on the horizon.

[snowwolfe]

Can you go inside any bank and withdraw cash for free using the card?

[dragon813gt]

They tried this w/ my step daughter at Five Below. The manager made her fill out all the forms. Had her ask about direct deposit. Which of course they would do. Apparently I’m the only parent who opened up a bank account w/ my child. She took in a voided check like you do and was good to go once their accounting department set everything up.

Like most things in life, follow the money. Someone is getting a piece at multiple levels.

[marek313]

Cmon think about it guys. If I open up bank account under my name and deposit your paycheck who earns the interest????? Employee gets the card and I get to keep all the interest its simple really. Thats besides the point of all the hidden fees. This is a cost of being lazy and not thinking which many young people these days prefer. Many are looking for shortcuts only to find out that shortcuts lead directly back to the start line

[Alstep]

What ever happened to good old cash on the barrel head??? Can't get any simpler than that.

[bedbugbilly]

I'll start out by saying I'm "old" and it seems like the more "progressive" all this technology the less paper trail there is. Unless I am totally befuddled - most McDonalds and other fast food places are franchises are owned by individuals. So they hand a high school employee a prepaid debit card for a paycheck???? Are they also handing her a slip showing the federal/state/local income taxes with-held as a proof of the fact to the employee that their with-holding has been taken out and indeed paid?

This may be all kosher . . . but if it was my child, I wouldn't be happy about it and I would investigate but further. Let's be realistic . . even though it is a McDonalds, the restaurant business has the highest failure rate of any business. Every small business (even franchise) are hurting due to he covid shutdown, etc. plus, they were eligible for the government "help out" which has stipulations attached to it. A quick call to your State
Treasury Department (if they are working and will answer the phone) should provide information on what is and what isn't kosher.


A case in point . . . . my mother ended up paraplegic as a result of a surgery in 1995. I wa able to keep her in her home for the next ten years until her death, but it required having healthcare workers coming in. I contracted with one healthcare agency - their employees were very good and I had no issue with them at all. The company was new . . . . after about a yer and a half, one aide that had become very close to my mother and our family, came to me extremely distraught. All of the employees had received letters from the IRS that their employer had never paid their with-holding taxes and that they were coming after the employees as well as the employer to collect them.

Maybe there is nothing wrong with these debit cards - but if this is the "new way" of paying people . . . then I personally don't consider it "progress". Years ago, when I taught school and before I became self-employed, our paychecks were direct deposited to our individual bank accounts and we were always provided with a with-holding slip every two weeks since we were paid every two weeks.

Again, I'm old . . . but everyone seems to be on the bandwagon with everything being done electronically . . . that works I guess until there is a "software snafu" or someone hacks into a system . . . not to mention how every country is now open to cyber attack. The government pushes it as it is "paperless" . . . but they seem to not have any problem with passing regulations such as making it a requirement to always include a page in 900 different languages with each health insurance statement/mailing of pass a law that adds another page to everyone's income tax return.

And by the way . . . kudos to you and your daughter . . . and your daughter for wanting to work for the summer . . . I have a feeling that she is a good kid and a real pleasure to have around.

[dragon813gt]

They still get a paystub. Most likely digital access to it. Most places will use a payroll service like ADP who will provide the paystubs.

[Four-Sixty]

One of my kids worked at Applebys a couple years ago. The debit card was the only option, and they charged her fees.

[jonp]

A simple way to avoid questions and employ illegal aliens. Also, if everyone is paid like that what's to stop the government from spying on your every purchase or simply shut off the card if they decide they don't like what your buying like, say, firearms?

[bangerjim]

It seems to depend on the company and the type of card. My wife got a rather large payout from her company on a debit card. The money just sits there until she uses it. No fees, no diminishing balances. Just plastic money she can use anywhere anytime until it is empty. Someone besides her IS getting the interest on that chunk of money!

That is THAT card..............your instance may be totally different! Check into it.