Clark Howard: Payroll cards
ATLANTA, Ga. -- I have a very special serious warning for you if your employer says, "Do I have a deal for you. Instead of paying you by check or if you have a checking account by direct deposit, we're going to give you a piece of plastic."
It will have a Visa or Mastercard logo on it, it will be so much better getting this payroll card. But who is it better for? It's actually better for your employer, not you.
Because what the employer does is they cut a deal with the bank, usually one of the biggest banks in the country, to issue these payroll cards and avoid the cost of normally doing payroll. Why? Because the big bank that issues the payroll card wants to make fee after fee on you as you go to use that card at stores, at ATMs or whereever.
If your employer offers you the option of a payroll card, you tell them no way! There's a lawsuit against a local McDonald's for forcing people to get paid this way.
They backed off! Let your employer know you want a traditional check, not a rip-off payroll card.
For more information go to ClarkHoward.com.
Watch Clark Howard weekday mornings on Action News This Morning on FOX30 beginning at 7 a.m.
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