Illinois AG pushes for payroll card regulations
By Alejandra Cancino
Chicago Tribune
When Mike Compton was hired at a warehouse six months ago, his employer handed him what looked like a debit card and told him his wages would be deposited on it.
Nationwide, an increasing number of employers, especially those in low-wage industries like retail and fast food and including companies like McDonald’s and Wal-Mart, are turning to payroll cards in lieu of paychecks. Businesses prefer the cards because they save $2.75 each time they electronically load the card instead of cutting a check, according to Aite Group, a Boston-based research and consulting firm.
But workers say using the cards means getting socked with fees, including some that aren’t disclosed, for everything from accessing their money to checking balances. Some workers have quickly run up fees of several hundred dollars over a year’s time.