Complete Coverage:

Complete Coverage:
Ft. Hood Shootings

°

Homepage / Money
Text Size

No Bank Account? Payroll Card May Be Best Bet

Employers In 17 States Eligible To Offer New System

UPDATED: 12:47 pm EST February 3, 2004

Instead of a paper check at the end of the workweek, some employees now have the option of receiving their wages in what may be the paycheck of the future.

Payroll cards are being billed as a convenient, cost-effective way to handle payday. They are targeted toward part-time workers, low-income workers, temporary workers and teenagers.

VISA USA's Todd Brockman said 32 percent of the population either does not have a banking account of any kind or does not have the banking account that suits their needs.

  SURVEY
If you were given the option, would you choose a payroll card instead of a paycheck?
According to Brockman, those people are "considered unbanked or under-banked."

That particular statistic translates into millions of workers for whom payday can be a logistical and expensive headache. These types of workers are often forced to pay an average of 5 percent of their paychecks to cash their pay stubs.

Andral Parrish, who works at U-Haul, is one of more than 1 million workers who use a payroll card. Her earnings are transferred to a card that can be used at ATMs, gas stations and grocery stores. An added benefit is that the employee doesn't lose money if the cards are lost or stolen.

"I lost my card and I had bills to pay on payday," Parrish said. "I called CashPay and they actually sent me my whole check through Western Union. I didn't have to wait, so that was very convenient."

But some advocacy groups say payroll cards offer the same problems as a bank account -- such as extra fees and costs -- without the benefit of being able to save and build wealth.

However, employers who use the system say it's proving to be cost-effective.

"We're saving about $50,000 to $60,000 per year," said Othon Herrera, CEO of Talent Tree.

With an estimated 190 million paychecks printed each year, employers stand to save time and money -- up to $100 per worker, reported WMAQ-TV in Chicago.

"We used to spend all day Thursdays just getting checks ready for distribution," said Sam Austin, payroll manager for U-Haul. "We find other things to do that day."

Some of the other companies using the payroll card are McDonald's, Blockbuster and Sears.

Links We Like

Sponsored Content
Find out what a sputtering economy and an increasingly difficult to crack job market means to you. More

You can pick your friends, but not your family -- or your neighbors. Here's what you need to know about how to deal with yours. More

If you're looking to save on your next new vehicle, a low sticker price is just one aspect. Consider all the costs and make the right decision. More

Explore the internet’s leading source for online universities and get financial help to further your education! More

Most Popular

Marketplace

  • AutoClick to Expand

  • JobsClick to Expand

    • Six Answers Interviewers Need To Hire You

      During the typical job interview, you'll be asked a lot of questions. But do you really understand what the interviewer needs to know?

    • Guide To Negotiating A Great Salary

      You can start laying the groundwork for your salary negotiation even before the first interview. Here's a step-by-step guide.

    • Should You Say Yes To A Buyout?

      In today’s economy, the lure of a big-bucks buyout can be tempting, but before you say yes, take the time to understand what it will mean for you.

    • Ten Rules For Interviewing

      In the current job market, you'd better have your act together, or you won't stand a chance. Check yourself on these 10 basic points before your next interview.

  • WomenClick to Expand

    • Healthy Living In Your 40s

      Your guide to looking and feeling your best.

    • Manage Stress, Find Balance

      The idea of living a balanced life may seem like an oxymoron. Yet working toward balance and self-care is key to feeling in control and more joyful at home and work.

    • Weight & Exercise: The Right Mix

      Being healthy is related to how well you take care of yourself. But it’s never too late! A woman can learn new, healthy habits at any age.

  • InsuranceClick to Expand

    • Auto Insurance Quotes

      Simply enter your zip code and get great deals on your car insurance from the top companies. Click here and start saving today!

    • Health Insurance Quotes

      No matter where you live, you shouldn’t have to pay too much for health insurance. Your zip code is all you need and we’ll do the rest to find you great insurance rates.

    • Home Insurance Quotes

      Your home is your most valuable asset. So make sure you have coverage that fits your needs and doesn’t break the bank.

    • Life Insurance Quotes

      What would happen to your family if you were suddenly gone? Don’t leave their future to chance and find top quality life insurance before it’s too late.

    • Business Insurance Quotes

      Don’t take chances when it comes to insuring your business. To get the best rates from top companies in your area just enter your zip code.

  • Your LifeClick to Expand

Question Of The Day

Have you ever gone onto Facebook or other social networks at work?

Sponsored Links