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Pay card payroll catching on, often hurting employees

The pay card payroll option is gaining momentum, but employees must research to make the fairest choices for their employers.

credit cards

credit cards

Pay card payroll gaining traction: good or bad?

When a new employee of a McDonald’s received her first paycheck in the form of a debit card, she was discouraged, more likely enraged, to discover that the card came with fees attached. For every kind of transaction, there was a charge. Minimum wage employee or not, no one should have to hand over any part of earnings.

There was no other option from this particular employer. No direct deposit. No traditional paycheck. The only way to get paid was to pay, essentially.

The employee, a single mother, upon learning this, promptly quit her job and sought a lawyer. This form of pay, however, is catching on with employers. A payroll budget is basically eliminated. No printer. No printing. No ink. It’s an easier and less time consuming payroll solution for employers, but the downsides for employees are many.

Employers: save money without shorting employees

In this specific case, a fee was attached for every transaction made on the debit card, and while it may be a convenient way to get paid for those who don’t use checking accounts, those transactions add up quickly especially for those earning the minimum wage.

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In this day and age, we all want to eliminate as much paper from our lives as possible, but there are cost effective options for streamlining the payroll process. Businesses like specialize in electronic payroll, and anyone can sign up for a PayPal account into which funds can be deposited. These and dozens of other combinations of tools eliminate costs.

It may be the economy’s impact on insane budgeting techniques, the fascination with having the newest technology, laziness, or lack of staff that is causing employers to take shortcuts, but the bottom line is payroll is not the place to make cuts. If an employee is having issues with being paid fairly and efficiently, it isn’t a tough decision to make. Many will quit jobs because of pay such pay issues, and most will quit them abruptly. The costs associated with such an employee turnover negate the efforts made to save money by cutting corners in payroll.

If a pay card payroll system is going to be implemented, employers should shop around. It has become a competitive industry, and there is sure to be a pay roll card that work for business as well as for employees.

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Written By

Kristyl Barron holds a BA in English Education from the University of Central Oklahoma and an MHR in Counseling/Organizational Management from the University of Oklahoma. Barron has been writing professionally since 2008, and projects include a memoir entitled Give Your Brother Back His Barbie and an in progress motivational book called Aspies Among Us.

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