Cash Cards
Rockie
2,136 Posts
Does anyone have any experience with financial institutions that have "cash cards" for employees who are unable to obtain a checking account?
We have a mandated direct deposit, but often have individuals who cannot obtain a checking account for various reasons. This cash card allows them to withdraw (free) from their savings accounts...a certain number of times a month.
We have a mandated direct deposit, but often have individuals who cannot obtain a checking account for various reasons. This cash card allows them to withdraw (free) from their savings accounts...a certain number of times a month.
Comments
You may want to check your state law again. I am looking at a payroll legal alert regarding state law for direct deposit and it states that South Carolina is VOLUNTARY, the employee recieves a pay statement and is allowed one free withdrawal.
In my opinion, the problem with the cards is that the companies that issue them are looking for a profit (unlike a regular bank ATM card which is offered as a value-added service to you, the bank's customer).
In our case, employees get one free draw per week, however, they have no network ATM's, so the technically "free" draw is only free from the card's standpoint since they still get the ATM owner's fee deducted.
Anything above and beyond this draw is outrageous. Even POS transactions carry a fee.
I am working with a local credit union to remedy this and make heavily-restricted savings only accounts available to all employees, regrdless of credit check. I suggest you look at these cards only as a last resort.
Gene