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In almost cases, payroll cards are just prepaid cards that an employer has setup with a given prepaid card company for employees that don't have bank accounts, so yes.



Scary. These prepaid debit cards are being used everywhere in lieu of traditional checks from unemployment benefits, short term disability(maternity benefits) etc.


The thing that I don't understand is that these prepaid debit cards are only loaded from the government or your employer, hence guaranteeing the money is legal. Yet these cards are what is being targeted, because only the poor use them.


What's not to understand? Money is money, it spends just as well regardless of who gave it to you.


These cards are predatory because they have fees to withdraw, fees to not have the card expire and your money go poof, and even fees to even check your balance.

Some states have enacted laws (Illinois is one I believe) that prohibits employers using these cards if the employee does not wish to use one.

Employers use these cards because the debit card providers are willing to take on the cost of payroll for the privilege of gouging the employees in fees.


From your previous post:

> Yet these cards are what is being targeted, because only the poor use them.

Same reason as this:

>Employers use these cards because the debit card providers are willing to take on the cost of payroll for the privilege of gouging the employees in fees.

The poor do not have the ability to fight back, and their employers have the resources to make sure the gov't does not shut these things down and require proper paychecks. Never underestimate the rich's ability to exploit the poor.


Yep, grew up and have friends/family in Oklahoma. Disability and unemployment benefits come on prepaid cards, as well as tax refunds.

Most ATMs charge a fee to check balance, and a separate fee to withdraw money as cash. These cards do usually have a free phone number you can call to check balance, but you almost always have to pay a fee for withdrawal. And if you have, say, $19 on the card, it's effectively impossible to get that out as cash, because no ATM lets you withdraw in less than $20 increments.

Also, most blue-collar and minimum wage jobs use prepaid cards. At least companies like McDonald's as well as various factory jobs do. For McDonald's, according to friends at least, there is no option for anything else. Even if you have a bank account, you can't do direct deposit, you still get a prepaid debit card that your paycheck goes to.


Actually, they aren't the same. Payroll debit cards are protected by certain provisions that don't apply to GPR (general purpose reloadable) debit cards. Thankfully they have fewer predatory fees and it's required that 100% of the pay amount is put on the card. They can still be subject to very high ATM fees, and possibly inactivity fees (since the provider doesn't earn any interchange fees if the card isn't swiped. I can't recall all the details but I looked into implementing both versions at a previous job.


Just noticed my typo, but its too late to fix. I was torn between "almost all cases" and "most cases" and wound up with "almost cases" lol.




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