[p2p-research] Walmart: No More Paycheck Here's Your Pre-Paid Debit Card [Unbanked]

[Ryan]

  Sent to you by Ryan via Google Reader: Walmart: No More Paycheck
Here's Your Pre-Paid Debit Card [Unbanked] via Consumerist on 9/9/09

Walmart, our nation's largest employer, has eliminated paper paychecks.
Now employees can choose to sign up for direct deposit or have their
wages added to a pre-paid debit card. ABCNews says that only about half
of Walmart's employees use direct deposit — the rest either prefer a
paper paycheck or, in some cases, don't have a bank account.

 From ABCNews:

Wal-Mart employees will be able to use the cards anywhere that accepts
MasterCard and also be able to get cash from ATMs.

There would be no fee from Wal-Mart or MasterCard – who is providing
the cards – for the first ATM withdrawal in a pay period. (Banks could
charge their own fees for using their ATMs.) After that first
withdrawal, each additional one would be $2. Employees can also
purchase something at Wal-Mart or Sam's club stores and get cash-back
above their purchase without any fees. Workers can also get checks to
pay people who don't accept debit cards.

The use of company controlled debit cards brings up some interesting
privacy issues as well. Debit cards leave a paper trail — do you really
want your employer to know how you spend your money? Walmart says they
don't have access to that data:

"Wal-Mart's Moore said that would not be the case, saying that the
program is "administered by MasterCard and First Data and we won't have
the ability to see that information."

The upside for some employees — those without a checking account who
were relying on check cashing services — is that it may actually save
them money. Either way, it will certainly be cheaper for Walmart. The
switch to debit cards will save 257,572 pounds of paper a year.

Wal-Mart to Pay Via Check Cards [WSJ]
Wal-Mart to Staff: Bye-Bye Paycheck, Hello Debit Card [ABCNews]
(Photo:crawfishpie)

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