Compensating your employees with pre-paid debit cards is an extremely cheesy way to cut your payroll costs. Hidden fees can whittle away at an already paltry McPaycheck until it's down to nothing.
Distributing wages on paycards is often cheaper for a company than buying, processing and distributing paychecks. Employees who get the cards, which come with personal identification numbers, can use them at many bank ATMs.Hey, here's an idea...how 'bout you pay them cash.
...there's nothing to prevent the assessment of fees by paycard companies for uses, such as ATM withdrawals after the initial free withdrawal or paying bills online. There can also be monthly fees and other charges.
Also, there can be inconveniences. If a paycard is used at a gas pump, a $50 or $75 temporary hold on could be placed on the funds. (Using the card inside the station to pay for gas usually eliminates that problem.)
Checking the amount of money left on a card usually requires a phone call. And using the card along with another form of payment — such as cash or a credit card — to buy something for more money than is left on the card can be tricky too.