Most recently there have been reports that some businesses, especially types of retailers and fast-food restaurants would only pay their employees through a card. And there have been many complaints. These complaints consist of issues with all sorts of ATM fees, teller withdrawals or difficulties checking the balance.
The Consumer Financial Protection Bureau was sure to send out a reminder, Workers take note: Your boss can’t force you to accept wages on payroll cards,” after these reports began to spread.
It is said that using payroll with these cards is definitely cheaper than using paper checks, and it’s easier for workers that don’t have a checking account. However, the cheapest solution for any company is the use of direct deposit.
If you do want your wages via a payroll card, you have some federal protections, the CFPB said.
These protections include the knowledge of all fees that may occur, and access to account balances and record of activity for the past 60 days of use.
Liability for unauthorized use of your card is limited, provided you report the problem within a certain time. Plus, financial institutions must respond to a report of an error if you make it within 60 days of getting a statement or accessing the account history, or within 120 days after the mistake occurred.
Employers, as well as employees, please she sure to take note of this. This is a huge liability for employers, and quite the warning for those employees offered payment cards.
