The right pay card program saves employers time and money, while pleasing their employees. But only when employers choose their pay card wisely. Otherwise, their program could land them in court.
Be Aware of Pay Card Fees:
Look at the McDonald’s franchise. Recently, an ex-employee in Pennsylvania initiated a class-action lawsuit against the company over its pay-card program. Her grievance: the cards were loaded with unavoidable fees that cut into her modest earnings.
And when you break down the fees, can you really blame her?
- $1.50 ATM withdrawal fee
- $5 over-the-counter cash withdrawal fee
- $1 balance inquiry fee
- $.75 fee for every online bill payment
- $15 to replace a lost or stolen pay card
I can’t. Fees like this add up quickly. And what makes it worse is that these employees are earning close to minimum wage.
Not All Cards Have Fees
But not all pay cards come laden with user fees. If you’re looking into employer payroll pay card programs—and if you haven’t, you should—be sure to review the fee schedules closely.
That’s what we did. Pay cards are so cost-effective, we offer our clients a complimentary program as part of their EPAY time tracking system. And after reviewing the marketplace, we chose Simply PaidTM Visa® pay cards to compliment our employee time-tracking system.
One major reason: Simply Paid’s less-is-more approach to pay card fees, which includes:
- Free cash access to paychecks every pay period
- Free online access
- Free online bill pay
- Free convenience checks
- No monthly fee or purchase transaction fee.
Personally, I’m proud of our payroll card minimal fee approach, and our clients like it, too. Why nickel and dime your employees when there are other options? For more about Simply Paid pay cards, read more.