Sunday, June 30, 2013

Nickeling and Diming department

Have you heard of this? Hourly-paid workers are now getting their pay in the form of stored-value cards.
But in the overwhelming majority of cases, using the card involves a fee. And those fees can quickly add up: one provider, for example, charges $1.75 to make a withdrawal from most A.T.M.’s, $2.95 for a paper statement and $6 to replace a card. Some users even have to pay $7 inactivity fees for not using their cards....
These fees can take such a big bite out of paychecks that some employees end up making less than the minimum wage once the charges are taken into account....Devonte Yates, 21, who earns $7.25 an hour working a drive-through station at a McDonald’s in Milwaukee, says he spends $40 to $50 a month on fees associated with his JPMorgan Chase payroll card. 
Banks are really the new Mafia, shaking down everybody that doesn't have a protector. And protecting guess who?
Taco Bell, Walgreen and Walmart are among the dozens of well-known companies that offer prepaid cards to their workers; the cards are particularly popular with retailers and restaurants... a calculator on Visa’s Web site estimates that a company with 500 workers could save $21,000 a year by switching from checks to payroll cards.
Nice little wage you're getting. Wouldn't like to see anything happen to it... Image via philosecurity (and another article about bankster shakedowns).

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