Comments on: Payroll debit cards: 3 keys to avoiding unpleasant surprises http://www.hrbenefitsalert.com/payroll-debit-cards-3-keys-to-avoiding-unpleasant-surprises/ Daily dose of benefits news and know-how Sat, 18 Jun 2011 21:36:33 +0000 hourly 1 http://wordpress.org/?v=abc By: Carl Morris http://www.hrbenefitsalert.com/payroll-debit-cards-3-keys-to-avoiding-unpleasant-surprises/comment-page-1/#comment-27 Carl Morris Fri, 18 Apr 2008 14:54:50 +0000 http://www.hrbenefitsalert.com/payroll-debit-cards-3-keys-to-avoiding-unpleasant-surprises/#comment-27 Those are all great tips, however they do not go far enough to address the issues employers and employees can face. FDIC Insurance is a given. However, the employers need to ask if each employee has an individual FDIC insured account. If the bank or payroll card company uses a single account with several sub accounts for each employee they can easily surpass the FDIC $100,000 amount. Don't assume. Bigger is better or if it's from a bank it meets all state regulations. Several of the largest processors use banks with a very small footprint. What precautions have they taken to insure the funds are secure in the event of closure, fraud, etc? Several major banks clearly state in their literature or website it is your responsibility to ensure your program is compliant with state regulations. While this is a true statement, they do not tell you that the program they offer will not meet the regulations of several states. Federal and State governments are focused on enforcement of regulations regarding low wage workers. What are you risking in fines and penalties by using a program that is not compliant with the law? Fees and Charges; It is important to see a fee schedule; however it is equally important to understand the specifics of items on he schedule. For example many companies offer the first transaction free, however what your employees later discover is if they check their balance at an ATM they just used their first free transaction and now must pay the stated price to receive their funds "Free and Clear" as required in most states. The "Free and Clear" option offered by many companies requires the employee to do one of more of the following tasks; 1-To go to a specific branch or retailer 2- Request a check via the mail or 3- call customer service to get an authorization then write a blank check for the correct amount in the correct manner then travel to a designated retailer who calls to verify the accuracy and authorization is correct before cashing the check. How beneficial are these "Free and Clear" options for your employees? A final concern is how to get the full benefit of the payroll card saving when many states still require delivery of the paystub at the time and place of employment in paper form. While eliminating checks is a substantial saving, if you have multiple locations to overnight checks and stubs to now, your real saving will be realized by solving this issue. Education is the key to satisfaction and generating savings for you and your employees Those are all great tips, however they do not go far enough to address the issues employers and employees can face.

FDIC Insurance is a given. However, the employers need to ask if each employee has an individual FDIC insured account. If the bank or payroll card company uses a single account with several sub accounts for each employee they can easily surpass the FDIC $100,000 amount.

Don’t assume. Bigger is better or if it’s from a bank it meets all state regulations. Several of the largest processors use banks with a very small footprint. What precautions have they taken to insure the funds are secure in the event of closure, fraud, etc? Several major banks clearly state in their literature or website it is your responsibility to ensure your program is compliant with state regulations. While this is a true statement, they do not tell you that the program they offer will not meet the regulations of several states.

Federal and State governments are focused on enforcement of regulations regarding low wage workers. What are you risking in fines and penalties by using a program that is not compliant with the law?

Fees and Charges; It is important to see a fee schedule; however it is equally important to understand the specifics of items on he schedule. For example many companies offer the first transaction free, however what your employees later discover is if they check their balance at an ATM they just used their first free transaction and now must pay the stated price to receive their funds “Free and Clear” as required in most states. The “Free and Clear” option offered by many companies requires the employee to do one of more of the following tasks;
1-To go to a specific branch or retailer 2- Request a check via the mail or 3- call customer service to get an authorization then write a blank check for the correct amount in the correct manner then travel to a designated retailer who calls to verify the accuracy and authorization is correct before cashing the check. How beneficial are these “Free and Clear” options for your employees?

A final concern is how to get the full benefit of the payroll card saving when many states still require delivery of the paystub at the time and place of employment in paper form. While eliminating checks is a substantial saving, if you have multiple locations to overnight checks and stubs to now, your real saving will be realized by solving this issue.

Education is the key to satisfaction and generating savings for you and your employees

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