Wal-Mart To Pay Via Check Cards.

[Q3JR4]

Wal-Mart Stores Inc., the nation's largest private employer, is eliminating paper payroll checks in the U.S., transferring workers' earnings to a debit card if they decline direct deposit to a bank.

Wal-Mart is the biggest company yet to make the move that it said will save paper and money. It estimates the move will save 257,572 pounds of paper a year. It declined to specify the savings but said the shift will reduce its payroll costs.

<snip>

It said employees' first ATM transaction a pay period is free; subsequent ones cost $2 each.

<snip>

More http://online.wsj.com/article/SB125193862292181741.html">here.

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Please charge me to access my account, yeah that will work.

Q3JR4
Does not currently work for Walmart.

[derby378]

1. All that disposable plastic can't be good for the environment

It's easier to grow new trees than to create more oil.

[xultar]

4. Duh, they are supposed to keep the cards. It is great for people who don't have checking

accounts.

They are often charged like 8 to 16 bucks to cash checks. It will save them money.

[guitar man]

8. exactly

Most of the people I know working at WM and other dirt wage jobs don't have checking accounts so they have to get them cashed at National Check Cashers or some other vulture operation like that. And, around here, 7-11 and some of the other convenience stores have free ATMs that don't charge any fees.

[xultar]

2. This is not a bad thing. The employee is supposed to keep the card. For people

who do not have checking accounts and have to pay to cash checks this will save them tons of money.

[Donnachaidh]

5. if they are being charged $2 a pop to access their own money at an ATM?

This is a BAD thing. Especially if they try to use the card to pay bills, etc. Walmart most likely has a backdoor deal with the issuing bank to get a percentage of fees charged these people.

Welcome to the company store, 21st century style.

[Goldom]

6. Wal-Mart runs its own bank, from what I hear.

Meaning they get ALL the fees back. Hate them even more now...?

[Donnachaidh]

10. all this *green* BS is just another PR stunt, with a grab at the wages of their workers

:eyes:

[blm]

18. Plastic tech version of "I owe my soul to the company store"

.

[Donnachaidh]

23. no kidding -- think of the possibilities

They issue you a card that you will only be able to get your money from THEM without a fee. And THEY have control of that money until YOU take it out - so THEY collect any interest if you leave your money on the card. And if you use an ATM to draw it out, you get hit with a fee, which they get a cut off, naturally.

I'm sure they've dreamed of bringing back the company store -- and all for the benefits of being *green*. I'll bet they'll even get a tax write-off or two out of the deal.

[Statistical]

25. How much does it cost to cash a paycheck w/ no bank account?

Know anywhere that does it for free? Anywhere?

[xultar]

32. It can cost as much as $20.00 in some places

[xultar]

31. Are you serious. My bank charges me $3.00 to get my money @ an ATM if I don't

go to their bank.

My bank is in the mid west.

I live in ATL

I never have an ATM from my bank.

[Tangerine LaBamba]

33. Some of these cards work

like this -

Yes, WalMart can charge them for a second, and subsequent, ATM use.

BUT, if they use their card at, say, the supermarket, when they slide it, they're asked if they want cash back, and they can get cash there - no charge.

So, there's no need to use an ATM, unless you want a whole lot of cash, and, if you do, then a $2 charge isn't too bad.

It's a lot better than paying those fucking check-cashing places.................................

[aikoaiko]

3. It may not be a bad deal.

I would think that if they didn't have a bank in which to do direct deposit, then they are using check cashing businesses that charge a lot for their service. At least this way they can cash out once for free.

Or use it like any other debit card at a business that accepts them. I'm sure a lot will be spend their money at Wal-mart.

[DBoon]

14. could they take these cards to a non-Walmart ATM for cash?

If so, how would the fees compare to check cashing businesses?

[tammywammy]

15. They can take them to any register at a Wal-Mart or Sam's and withdraw for free n/t

[Statistical]

28. No reason they couldn't.

Or they could withdraw all funds from Walmart ATM they day they get paid.
Or get cash from any cashier
Or withdraw rent money and other bills paid by cash/money order and use the rest as a normal debit card.
Or sign up for direct deposit instead.

Nope it always has to be a massive conspiracy of nothing when it comes to Walmart.

[TheWatcher]

7. Ah, another way for the Banksters to parasite more funds from the worker bees.

Such a wonderful idea.

Now, the question here is, who gets to keep those $2 fees? Because ATM fees always apply when you are not using a card from that specific Bank, and ATM fees from Convenience stores and the like always charge you fees no matter what.

Are we to understand that there will be an ADDITIONAL $2 fee to be tacked on to the ATM fees as well?

Who gets to keep that, Wal-Mart?

If that were the case, then this has nothing to do with saving paper.

Unless the paper is green and going into their already oversized wallets.

[tammywammy]

12. See post 9 n/t

[tammywammy]

9. They'll be able to withdrawl cash at Wal-Mart & Sam's registers for free

"Workers will be able to use the cards wherever debit cards are accepted, including at ATMs, and will be able to withdraw cash without fees at Wal-Mart and Sam's club registers."

http://www.wakeupwalmart.com/news/article.html?article=2396


So while it may cost after the first time at an ATM, they can withdraw their money for free all the time at a register in the stores.

[Maine-ah]

11. the company I work for does the same.

but they also offer direct deposit, which I'm sure WM does as well. The cards are BS. 2 per transaction, plus, if you don't know your balance on the card and call for the balance, you get charged 2 bucks for that as well. It's bull shit. I direct deposit my check, but not all people have checking/savings accounts to do that with.

[tammywammy]

13. They can withdraw for free at any register in a Wal-Mart or Sam's. n/t

[DJ13]

16. This is an end run to try and become a bank

WalMart has tried for years to be allowed by the government to buy or start a bank, being declined even by the Bush administration.

But the financial industry doesnt want them in the business knowing how they've driven every other competitor in retail out of the market.

This seems like a sneaky way to try and start a financial company through their own employees.

[high density]

17. So walk down to the nearest bank, there may be one in the Wal-Mart, and open an account

There, free checking account for your pay to collect in. No fees unless you do something stupid like spend money you don't have.

[quaker bill]

19. I have not been able to get

a paper paycheck for years now. It is now all EFT. I work for government. There is no need for a conspiracy theory, paperless simply saves money.

The office in general is rapidly going paperless. Virtually everything we do is now digital and nearly all of it(except payroll and some security related personal info) is on the web in 48 hours. Documents are created, signed, and routed for review digitally. The only point stuff hits paper is just before mailing official notices out the door, and only the required external copies ever make it to actual paper. When I punch the "mail sent" button, whatever it is simply rolls out to the website, the same image as printed, for public access. It is part of a government transparency thing.

The unfortunate side is that this creates an absolute blizzard of content. So while you can see it all, finding the useful bits is more than a bit challenging.

[Obamanaut]

20. Most stores, even the fast food ones that people here hate, accept

check cards as payment. It is not necessary to stop by an ATM every day to get cash. It is possible to go days on end with no cash. Using the check card at a register, with PIN, for the purchase there is no hold as there is at a gas pump. And even that is get aroundable by going inside the store and using the terminal there, with a PIN input.

This is a non-crisis that all the chicken littles are ducking pieces of falling sky about.

[XanaDUer]

21. My hospital does the same thing

Some workers would not get direct deposit because it's not "biblical" (don't ask me - I was raised Catholic and know no signs of the end times but, apparently, direct deposit is one of the harbingers of the apocalypse).

So, choices now are direct deposit, debit card, or, snail mailed check to home with no guarantee of delivery. Some fundie co-workers had to accept the wrath of God and hasten the end times by enrolling in DD and now we also have to print out our own paystubs.

Funny how the old paycheck outweighs being biblical, but times are tough, after all.

Maybe they can sue for religious persecution!?

[mitchum]

22. When are they just going to build mill villages for their employees to live in?

[Statistical]

24. I don't see the problem.

They offer direct deposit with no fees.

For employees who decline they offer debit card so lets compare.

Employee gets a check = they cash it at a store of check cashing location for $4-$10.

vs.

Employee gets a debit card = no fees for making purchases and first ATM charge is free. So say they make a bunch of purchases on the card and 2-3 ATM withdraws per pay period (2 weeks) = $4 - $6.

Doesn't look like it costs a non-bank employee more than cashing a check.

ON EDIT: looks like others say they can get cash from any cashier so it might actually save them money $0 vs $4-$10 for check cashing.

Of course Walmart has a bank w/ no-fee checking account and ATM at every store.
So the even lower cost option is
1) open a bank account (Walmart would be convinient but open an account anywhere)
2) Setup direct deposit
3) No fees

[marketcrazy1]

26. what a brilliant scam!

how much money are we talking about here?, probably hundreds of millions per week! and all that money stays in wallmarts account until it is drawn out by the ATM card?? NICE SCAM WM!!! oh and how do you withdraw 218.21 from an ATM!!!............ I smell class action in the not to distant future..

[Statistical]

27. Walmart revenue in 2008 was $401 billion dollars.

Assuming an average float of 30 days that is something like $32 billion daily float.

600K hourly employees (I doubt the CEO doesn't have a bank account). Figure maybe 1/3 use the bank cards.

200K employees with an average part time paycheck of $600 is $120 mil.

Yup they did this just to increase their float by 0.3%.

Maybe just maybe it is a win-win for both Walmart and employee.
Of course if it is such a bad deal the employee can get direct deposit.
My employer offers no choice but direct deposit.

[marketcrazy1]

29. you know what they say

120 million here another 120 million there and pretty soon you`re talking REAL money!!

[tammywammy]

30. Or the employee can just get a checking account

OR the employee can take said debit card to a cashier at Wal-Mart or Sam's and withdraw for free.

[Hugabear]

34. 2012: Wal-mart to pay employees with store credit

I can just see it now. Before too long, some Walmart CEO realizes that the Super-Walmart centers offer pretty much everything that a person might need to buy, and starts to pay employees with store credit. Let's bring back those good old factory town days! :sarcasm: