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.
> 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.
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.