Fees Nibble At Income Of Those Paid With Plastic

An HSBC Solo debit card issued in the UK in 2007

An HSBC Solo debit card issued in the UK in 2007 (Photo credit: Wikipedia)

Editor’s note:  It’s generally people with lower incomes that get paid this way 😦

On paper, it couldn’t be more convenient: Instead of a check every two weeks, your employer hands you a debit card, depositing your pay automatically and freeing you to spend it immediately.

But then there are the fees: $1.50 to withdraw cash, another $2.50 if you do it from a non-company ATM, the $2 monthly account fee.  For workers making low wages, those fees can eat up a sizable portion of their income, a fact that has sparked lawsuits in Pennsylvania and elsewhere.

With one of the nation’s largest banks headquartered here and a slew of local public employers already signed up for similar programs, what role will Pittsburgh play in the payroll debate?

“It really is consistent with best business practices of going as paperless as possible,” said Brad Korinski, chief counsel at the Allegheny County controller’s office.  “On the consumer end of things, the debit cards provide immediate and guaranteed access to funds.  You’re not waiting for the post office to get it to you.”

Read more: http://www.post-gazette.com/stories/business/news/fees-nibble-at-income-of-those-paid-with-plastic-694438/#ixzz2YHeekGb0

McDonald’s Sued For Paying Pa. Employees With Fee-Carrying Debit Cards

Map of Pennsylvania highlighting Luzerne County

Map of Pennsylvania highlighting Luzerne County (Photo credit: Wikipedia)

She spent her days serving up Happy Meals, but when it came time to get paid, Natalie Gunshannon says a local McDonald’s franchisee gave her an unhappy deal.

The Shavertown McDonald’s forces workers to be paid only one way: with a payroll debit card that burdens workers with hefty fees to obtain their hard-earned cash, according to a lawsuit filed Thursday on behalf of Gunshannon and other McDonald’s workers.

Gunshannon and an untold number of current and former employees had no option to receive a traditional paycheck or get paid by direct deposit, she and her attorneys said in the class-action against franchise owners Albert and Carol Mueller of Clarks Summit.

“I’m looking for the pay I am owed and for them to understand there has to be an option,” Gunshannon, 27, said Thursday outside her Dallas Township residence.

Read more: http://www.mcall.com/news/breaking/mc-pa-mcdonalds-lawsuit-20130616,0,640515.story