WTF? My daughter just got her first paycheck and it was a debit

[BR_Parkway]

card of some sort - they told her that she could use it just like cash for gas, groceries etc...

She asked them what she was supposed to do about paying her rent and all. Has anyone else ever gotten a paycheck like this?

[FreedomAngel82]

1. Sorry I haven't

Strange. Why didn't she get a check??

[iamjoy]

2. Is This Even Legal?

Where does she work?

[ET Awful]

4. Doesn't sound legal to me.

Sounds like bullshit.

[ronnykmarshall]

70. You have to have the choice.

1. Paper Check

2. Auto deposit to you bank account.

or

3. Debit card. (which I think is a piece of crap)

[qanda]

3. That is bizarre

I've never heard of anything like that before.

[Nikepallas]

5. Redirish28 and I have not heard of that either. My suggestion without

oversteping your daughter's priacy is call the state labor department.


Where does she work? This does not sound good.

[pnutchuck]

6. what a world , what a world....

that's some funny stuff! I'm sitting here trying to picture what I'd be thinking if someone handed me a debt card instead of a good old fashioned depositable check.

on edit: she could just withdraw the cash at the atm, provided there's a pin, and deposit it into her own account.

[VelvetMonkeyWrench]

7. Debit cards can usually have an ordinary checking account attached

See if they'll issue paper checks as well.

[RaleighNCDUer]

32. Meaning that she has to bank where he boss tells her to?

WTF?

[LiberallyInclined]

53. All paychecks are drawn on a bank...that doesn't mean you have to

bank there to cash it.

this may be the companies system, and the employee is probably free to cash it out entirely, and deposit the funds in their own bank...i would hope.

[Tims]

64. As far back as the mid 70s

I had a job were I was required to have an account at a particular bank because the company only paid by direct deposit and only to one bank. This was the company TRW - not a small business.

[The Matson]

8. Gee, it must be that Bankruptcy "Reform". Just more...

advertising crap from DAS credit card companies.

excuse me while I vomit.

[ohio_liberal]

9. Hey, I got and offer for something similar

but it was for child support payments. The state of Ohio wants to hand out Mastercard debit cards instead of child support checks and direct deposits.

[KitchenWitch]

16. Minnesota does too

I refuse to sign up for one because my ex's company plays a bit loose with the rules (he gets paid weekly, the child support gets deducted weekly but they do not send it to the state right away - the state has only a 24 hour turnaround once the funds are received - but the company holds on to the deducted child support to make their cashflow *look* better - illegal? possibly, easy to prove? no!)

[ohio_liberal]

19. My ex's company does that too

They only send it in once a month but it's deducted weekly. I've complained to my CSEA caseworker but the state won't do a thing as long as *any amount* is received once a month.

Ohio is loose with the rules too--Ohio's laws state that the money must be sent to the payee within 48 hours but at the first of the month's it's always, always at least an extra day, sometimes two while they're closing out the previous month. But, I'm digressing.

I didn't opt in to the state debit card. They say it's supposed to "save check cashing fees" for those without checking accounts, but you can only get $300-$400 per day out of an ATM and it charges $2 a transaction. Not much of a savings. I'll stay with direct deposit.

[KitchenWitch]

23. I still get a check in the mail

I would go with direct deposit, but I never know when, and how much I am going to get...Maybe your ex works for the same company mine does!

[Rainbowreflect]

29. As a CSEA worker I can tell you this happens all the time.

I have called employers to explain that they need to send in payments within 7 days of the withholding & I get a FU it takes too much time. We can haul them into court, but they will just do it right for a month or two & then go back to the once a month.

[RaleighNCDUer]

35. In the meantime, it sits in an interest earning account. n/t

[KitchenWitch]

37. yes and it really ticks me off

It is not like I *need* the money to support my son, it is the principle of the thing. I once told my ex about it and he too was surprised and pissed, since it gets withdrawn from his acount.

[shanti]

55. why?

so they can monitor the usage???

[n2mark]

75. this was my first thought

a debit card usage can be tracked, a pay check cannot.

[shanti]

78. same for a child support check

n/t

[Norquist Nemesis]

10. Huh? How'd they do that?

WOW! Where does she work? I don't see how that could be legal. Even if she can get the cash, is she going to have to trapse all over town to find an ATM that won't charge her fees to get her money out?

Something's just not right about this. Was it explained during orientation and did she sign off on it?

[Walt Starr]

11. Looks like a driveby post

:shrug:

The OP didn't stick around to answer questions or eleborate.

[Norquist Nemesis]

12. errr....

It's only been about 5 minutes. Maybe he/she got a phone call or is calling the state authorities about it. :shrug:

[Walt Starr]

14. Well, I'll give the OP the benefit of the doubt, for now

but if there's no response within about 15 minutes, something's fishy.

[Nikepallas]

13. Give them a couple of minutes they could be surfing other sections of DU.

[BR_Parkway]

44. No, I'm also trying to get some work done and was on the phone

with her trying to find out more info. They told her (it's a small family owned company) that that's the way their payroll service does it, saves them printing checks - that she can go to their bank and get a transfer check if she needs it to make a deposit into her account - they also told her that her bank should just deposit from the card directly. I'm waiting for her to call me back to see what the fees are - I had just never heard of such a thing before, wanted to find out if it was really unusual or not, I've been self employeed for the past 15 years, so I have no idea what is standard in corporate America these days (other then the Rethug meme of screw the little guy in the name of profits)

[im10ashus]

63. Direct deposit?

Have they heard of that?

[Catherine Vincent]

15. Maybe your daughter signed up for the debit card by mistake?

[shawcomm]

20. Yeah, I don't know how else she would have gotten paid that way.

I thought, at least for now, that you would have to agree to something like that.

[Riding this Donkey]

17. I have heard of this before. It is just a new way to get your check.

You can deposit it at your bank, get cash, use it like a debit card.

It eliminates the paper and everything is just made electronic.

There are quite a few companies that do it now.

It is not a bad thing.

A lot of people who don't have checking accounts like the idea.

[Dyedinthewoolliberal]

73. But, but, but.........

they still have to create those cards. What's the difference?

[Riding this Donkey]

79. You keep the same one all the time, they just put more money on it every

pay day.

you can go to your bank and deposit it or go to the atm or go to the store.

[UdoKier]

18. OMG it's the fucking Grapes of Wrath!

And we're back on SCRIP! Do they have a "Company Store"?

[senseandsensibility]

21. A couple of years ago at an Applebee's

( a restaurant chain here in California), the employees were meeting at a table near us, and we heard the manager tell the waiters and waitresses that from now on their paychecks would be automatically deposited into their bank accounts. When they asked if they had a choice, they were told no. I've often wondered since if that is legal.

[LisaM]

25. How can they force people to have bank accounts?

What if you don't want a bank account, or don't want a checking account?

[chromotone]

46. I agree...I've wondered about this for some time.

Why do employees have to accept a check for their work? Why couldn't they ask for cash, instead, on payday?

I got to thinking about this back when I was working more than one part-time job. I'd be paid then I'd have to race to my bank to deposit the check. Often, my working hours on payday conflicted with the bank's hours.

The final straw was one payday I received my check, and, instead of waiting till I got off and racing to the bank before it closed, I thought I could simply walk a few blocks to my employer's bank and have it cashed. No such luck. I was told I'd have to surrender a thumbprint since I didn't have an account at that bank. I asked if this were required even if the paycheck represented money due me for my services with monies drawn on my employer's account in their bank. They said that didn't matter: no account, no cash without a thumbprint. I said I wasn't the criminal in this case and all I wanted was money due me by my employer who had its account in that bank. In essence, I wanted my cash the bank was holding for its client. No way...I walked out and thought ever since: those of us who want to be paid in cash should have a right to that option.

By the way, during this period I was working in jobs with people on the lower rungs of the economic ladder. They were having to dash out to a nearby liquor store to cash their paychecks, always paying a fee to do so.

The banks want ALL of us to have accounts. Just like laws requiring auto insurance, the banks stand to reap a fortune if everyone had to have a bank account. Imagine if there was a law requiring everyone to buy your goods or services. You could retire next year, if not sooner!

[Jimbo S]

58. Because it'd be dangerous for your boss

to be walking around with hundreds or thousands of dollars in his pocket on payday. Checks make it easier and safer. Also makes it easier on the accounting department.

[earthboundmisfit]

47. And what about employees on the ChexSystems blacklist?

There are THOUSANDS of people on the ChexSystems blacklist who CANNOT open an account. Most people don't know about ChexSystems until they end up on it (even through no real fault of their own): If your bank sees fit to close your account due to what they consider excessive overdrafts (regardless of the reason) - or actually for any reason they choose - your information is sent by the bank to ChexSystems and you are prevented from opening a checking account, ANYWHERE, for at least five years! Regardless of the amount or situation which led the bank to close your account! So WTF does an employee do if they are REQUIRED to get paid by direct deposit? I've never seen this issue addressed before.

[Malikshah]

60. I work for the State of Florida

And we are required to have direct deposit.

As I have an out-of-state bank, it doesn't bother me in the slightest.

Computer meltdowns are the biggest fear, of course-- but barring being paid in gold bullion or cash--a computer meltdown would affect everything--banks/checks, etc.

[KharmaTrain]

Did You Get A Breakout?

Was there some sort of voucher showing the taxes withdrawn? If not, I'd call your state Department of Labor and look for a public advocate who handles labor issues. You may have something here.

I'd also see if your daughter, unknowingly, signed some sort of form when she took the job that permits them to do this. Many companies have gone to strict direct deposit of their paychecks to prevent pilfering and make paperwork easier. Payroll is a major pain for any business.

Also, find out if she has the right to withdraw all of her money without any penalty...or if there are service fees or charges on that card. If it's a pure debit, it's not a bad thing for her to have...if she treats it like real money, it could help her in establishing a solid credit record.

Cheers!

[eyesroll]

22. It is legal...

Don't worry. Assuming the company is otherwise doing things the right way -- taxes are still taken out, there's still an electronic record, etc. Although I do believe for rent and such she needs to deposit/transfer the funds into her checking account. (No idea how to do that, though.)

They are replaceable if lost or stolen.

(I am familiar with one payroll company that offers the cards to employers --
http://www.americanepay.com/ -- but I don't know if that's what your daughter's using.)

[Logansquare]

24. "From Paycheck to Plastic" Washington Post

http://www.washingtonpost.com/ac2/wp-dyn/A57322-2004Jan5?language=printer

"Payday used to be a logistical challenge for Anthony Barnes. With no bank account, the 20-year-old U-Haul employee couldn't have his pay electronically deposited overnight to his own account. So he'd wait four extra days to get a paycheck -- and then pay high fees to get it cashed at a nearby store. Sometimes, to avoid the fees, he'd deposit his check in his mother's bank account. But then he'd have to wait another week for the check to clear before he could get the cash.

Today, however, payday has become the pleasurable experience it is supposed to be, after Barnes's decision to take advantage of an innovation that is growing in popularity with companies and workers: the payroll card. U-Haul electronically credits his pay to a special debit account and Barnes then uses a plastic card to gain immediate access to his funds -- either withdrawing cash at automated teller machines or paying for goods at store checkouts, swiping his card like any other debit or credit card."

[iamjoy]

52. This Is Not A Good Thing

I can see it now, something that started to help low income employees who didn't have bank accounts. How it COULD end:

As companies merge and diversify, they will be involved in a number of businesses. For example, Wal-Mart may either buy or work a deal with a real estate company that has low cost apartments. Wal-Mart offer to "pay" their employees with credits for rent, food at Wal-Mart, etc. They will offer to automatically deduct rent from employees' paycheck. Eventually, it will get to the point where this is the preferred method of payment. This used to be a common practice with companies, giving "scrip" for pay that the employees could only use on company housing and at the company store. If the Republican have their way, we might return to this and it will all start out sounding like it is a good thing or to benefit low income earners who don't have (or can't get) bank accounts.

Or am I just paranoid to think we'll return to the Pullman villages?

[Logansquare]

65. "I sold my soul to the company store" I think the old song went

I suspect there are laws against this type of thing, but I understand your discomfort. I think security issues and the possibility that debit cards sponsored by Visa and Mastercard can lead to credit cards that poor people really can't afford are more salient problems.

[iamjoy]

74. Laws...For Now

But this bankruptcy law shows that these things could be changing.
They can already garnish wages for certain judgements...

[vpigrad]

26. This used to be a very common practise

Well, that was with company store credit and not a debit card. I've had a couple of mill jobs where a large portion of my pay was not given to me and instead was debited to the store account. I ended-up losing the first job after I spent my rent money on a hospital bill and wasn't allowed to cash-out my store account to pay for rent.

[Dr Batsen D Belfry]

27. Found a link from last year

http://www.washingtonpost.com/ac2/wp-dyn/A57322-2004Jan5?language=printer

<snip>
Payday used to be a logistical challenge for Anthony Barnes. With no bank account, the 20-year-old U-Haul employee couldn't have his pay electronically deposited overnight to his own account. So he'd wait four extra days to get a paycheck -- and then pay high fees to get it cashed at a nearby store. Sometimes, to avoid the fees, he'd deposit his check in his mother's bank account. But then he'd have to wait another week for the check to clear before he could get the cash.

Today, however, payday has become the pleasurable experience it is supposed to be, after Barnes's decision to take advantage of an innovation that is growing in popularity with companies and workers: the payroll card. U-Haul electronically credits his pay to a special debit account and Barnes then uses a plastic card to gain immediate access to his funds -- either withdrawing cash at automated teller machines or paying for goods at store checkouts, swiping his card like any other debit or credit card.

</snip>

I am curious as to how the purchases are tracked. Who "owns" the card and the account? The employer or the employee? I would hate to find out the employer would have access to how you were spending your paycheck.

Looked on Visa's site and found no mention of this.

DBDB

[Cleita]

28. Years ago when I worked at a bank, they just deposited

our salary into a personal checking account with that bank of course. We didn't have much choice. I understand that years later some court said it was illegal because a person should be able to open a checking account in the bank of their choice. Maybe there is a similar law that can stop this in it's tracks.

[ronnykmarshall]

72. I work for a bank

and I have my paycheck deposited direct into my account (at the bank I work for) and also into another bank.

My partner is able to break up his payroll into our accounts at both banks as well.

[johnaries]

30. My company makes those. If it's one of ours, she should be able to set

up direct deposit into her checking, or she can just pull cash out of an ATM and deposit that. We can even set it up so that part of it goes into her checking (either a set amount or a percentage of her pay) and she can keep the rest on the card and use it just like a debit or credit card.

It elimnates paper (save a tree!), and it's actually more convenient because you don't have to wait in line to cash your check, it's loaded onto your card automatically and you can use it immediately. Same if you have Direct Deposit set up.

You can go here for more info:
http://www.ecash.comdata.com/

[fob]

49. Do they issue a new card each payday? If so there is no tree saving

goin' on.

[johnaries]

68. Nope! You get one card, and your paycheck is "loaded" to it

automatically each payday, and you can access your money immediately. We originally created it for Over The Road truck drivers who were on the other side of the country on payday and couldn't go to the office to pick up their paycheck.

[okieinpain]

31. uh what state do you live in, because it's apparent that you're now

in hell.

[DefenseLawyer]

33. Saint Peter dontcha call me cause I can't go

I owe my soul to the company store!

[htuttle]

38. LOL

GMTA!

[DefenseLawyer]

41. Eerie!

and at the same minute too. Tennessee Ernie Ford would be proud.

[htuttle]

34. "St Peter don't you call me cause I can't go:"

"I owe my soul to the company store."

[chaz4jazz]

36. I don't want to sound like this is good...but...

I have had dealings with a producer in Germany who purchased a photograph. I asked him to mail me a check, in euros and he responded that he could really only pay electronically as they have almost completely done away with checks in Germany and the rest of Europe is following suit. So, bank account and debit cards is the wave of the future. Rent is automotically deducted from banking accounts on the day it's due. Gasoline, food, cleaners, neartly everyone accepts cards, even the metros and buses. Need cash, ATM has it for you.

America is way behind the rest of the world now when it comes to electronics and finance mobility, why we are only now getting cell phone technology that Finland had five years ago!

I can remember traveling to France in 1964 and seeing their lousy telephone systems - home and public. Now, their systems make ours look so passé.

This needs more investigation.

[NashVegas]

39. Go Read "The Handmaid's Tale"

The movie won't do the trick.

[pnutchuck]

42. You're right...

and you can get an account almost anywhere. My boyfriend picked one up from La Poste. Even if you have checks, you don't even have to sign them, just hand it over, and it's electronically processed like a debt card.

[AllegroRondo]

40. They have to offer a choice

the card may be the default option, but if she wants a regular check or a deposit to an account, they have to provide that.

[oneold1-4u]

43. Debit cards can be good

You can purchase debit cards like phone cards and merchandise and fuel, that give you some discounts. They are handy to have for those times when you need a little extra to get to the next payday. I have a couple. One was a gift card which family gives in place of trying to buy and get something into the mail on holidays, only to find it isn't needed, wanted or the wrong size.
Hope that SS doesn't try that though. I don't want government knowing how many rolls of TP my family uses. Through that one thing they could add tax to sewer and water bill! It would be called the "Flush Tax" and in drought years it would be triple!

[walldude]

45. Well we wouldn't want people using

cash, then how could we keep track of them. And this "get the money from an ATM" is all well and good but I can only get $200 a day from ATM's with my debit card....

[thinkingwoman]

48. have you asked the bank to raise that?

We raised our daily limits. The bank let us select where the daily limit would be.

[walldude]

54. Thanks thinkingwoman,

I never even thought of doing that. I just assumed it was standard policy... :toast:

[thinkingwoman]

61. you're welcome

I never knew until a couple of years ago when someone told me. Glad I could help.

[LiberallyInclined]

56. tell your bank you want to raise your daily limit.

$200 may be their set default amount.

[DS1]

50. Sounds like a kick-back scheme for marketing data.

The employer gives up your personal stats - age, sex, marital status, etc etc in return for 1 or 2% of the employers salary paid for by the credit company in return for the ability to know exactly where all your money is going.

[Logansquare]

66. Yes, unfortunately today most people don't care about privacy

I work with a lot of young people, and they aren't the least bit concerned about marketers having their information. Ronald McDonald and Tony Tiger are my friends--I think that's the general attitude.

[DS1]

69. That's exactly what the corporations are after, btw Ronald McDonald trivia

It was none other than Willard Scott who came up with the name and character, and even played Ronald before they went national.

http://www.thejoyboys.com/ronald1.htm

[sakabatou]

51. No...

I get a check that gets checked into my bank account.

[Rex]

57. Did she fill out the W2

Did they get a copy of her drivers license and SS? If no to any of these then she is not working for them legally. She might want to re-read any employment contract she might have signed.

[William Bloode]

59. No big deal,

My wife works at K-Mart and this is how she is paid. It cuts down on paper work and saves the company money. As far as i can tell no info is sold, we never recieved strange or excessive sales mailings etc.

There are some draw backs, 1: It can be hard to withdraw your money all at one time 2: It always seems you have some cash in there because most ATMs use a minimum denomanation, either $10 or $20(most $20) 3: you have to pay the fee to get the money from the ATM, between $1.50-$2.00 everytime you access your own money. All of the above can be made moot by obtaining your own personal bank account with a local bank and just having the money deposited there instead.

Really no worse than a check. I am sure we would all prefer cash, but that aint gonna happen unless you have a job like mine.

[MGKrebs]

62. I don't get it.

I like debit cards just fine, I just want it to be MY debit card.

With this paycheck card, I want to know:
-What account are the funds in?
-Who has access to it?
-How did it get set up?
-Maximum withdrawals?
-Wouldn't you want a receipt also anyway to show how much has been deposited, and to show the deductions?
-I suppose this could be convenient for those who do not have a bank account of their own, but it seems extra complicated for those who DO have their own account.

[elehhhhna]

67. It's an OPTION, and a darned good one--

I worked in staffing for years and there are an awful lot of people without checking accounts. Beats carrying cash. It's a useful option that I beleieve was invented by payroll companies in order to address a common employee complaint.

[northzax]

71. especially for companies spread out ovelong distances

I'm a temp right now, and my agency gave me three options: Direct Deposit on Wednesday morning, a check mailed to my house from central processing that arrives on (usually) saturday or monday or this card. They don't have the capability to print checks at every office, that woulbe absurd. So they do it this way. (I took the DD)

Many people at the lower end of the payscale don't have checking accounts. so they end up cashing checks at Check and Go, paying up to 10% for the priviledge.

[johnaries]

76. Actually, my company has been suppling this service for over 20 years

to Over The Road Truck Drivers. We supply cards for the Trucking Companies for Driver purchases that gives the company more control over the purchases and more information. We also have many customers who load the drivers payroll onto the same card. So, no matter where the driver is, as soon as it's payday he can use the card in an ATM, register a check through our 800 number, or have his pay Direct Deposited. We designed it because so many drivers couldn't get back to the terminal to pick up their paychecks.

We started expanding the service to non-Transportation customers a few years back, and called it eCash:

http://www.ecash.comdata.com/

[ikojo]

77. I used to work for for a large Calif. co. and they wanted to go to debit

cards for those who did not opt for direct deposit. They want to do away with paper checks. We had the ability to look at our check online two days before payday. I thought that was so cool!

It is the same as a check, however, I think it allows only a certain number of transactions at the ATM. I would talk to the bank that the card is from. The company I worked for was going to use Bank of America since it's a nation wide bank.

I left that company at the beginning of last year and at that time they had not instituted the debit card policy.