Do Payroll Cards Hurt or Help Employees?

by. Amy He

Following the ongoing lawsuit Natalie Gunshannon filed against McDonald’s for paying her wages with a payroll card, the New York Times writes about how payroll cards are a sticky alternative to getting paid via traditional methods or either check or direct deposit.

Most of those who are getting paid with payroll cards state that the cards are so loaded with fees that they hurt the people who need to rely on payroll cards, mostly those who don’t bank with traditional banking institutions.

The Times spoke to Devonte Yates, “who earns $7.25 an hour working a drive-through station at a McDonald’s in Milwaukee, says he spends $40 to $50 a month on fees associated with his JPMorgan Chase payroll card.”

For most companies, paying workers through payroll cards is a cost-cutting measure, since they could potentially save a lot of money by not paying employees with checks. The Times cites an estimate from Visa’s website where it “estimates that a company with 500 workers could save $21,000 a year by switching from checks to payroll cards.”

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