Payroll cards offer convenience at lower cost
Page | 1 | 2 | 3 | 4 |

Regulations for payroll cards
In general, state labor and employment laws govern the payroll rights of employees. Union contracts may also specify how people are to be paid. Currently eight states -- Delaware, Maine, Maryland, Michigan, Minnesota, Nevada, North Dakota and Virginia -- have specific laws on the books allowing employers to pay via payroll cards, and four other states -- Colorado, North Carolina, Oregon and Texas -- have said via Web sites that they allow the use of payroll cards. Legislation is pending in most other states.

One common point in all of the states' legislation is that employees are not charged fees for the use of their payroll card. Payroll-card issuers address that requirement in a variety of ways, such as providing at least one free ATM visit so that workers can withdraw most of their cash, should they desire. Some companies pick up all ATM-use fees for employees.

ECount's Gillen says his company provides card users with multiple options for accessing their pay. Stein Mart's employees are given blank, bank-issued counter checks along with the card. Each pay period they can call a toll-free number on payday for the net amount, look it up on the Internet or have a text message sent to their cell phone, all at no charge.

"They get net amount and an authorization code and write a check for that amount. The checks are issued through a bank, and users can cash them anywhere they would have cashed their traditional paycheck. For the employee users, life is business as usual," Gillen says.

"We only work with companies willing to go 100 percent electronic," he adds. "Everyone gets the benefit of direct deposit. We don't work with companies unless (their employees) have access to a computer, fax or phone at work."

Stein Mart provides Internet access at all of its stores for workers who don't have computers at home. ECount does charge users a fee for speaking to a customer service representative. Fees for services vary from one provider to the next, so employers considering using payroll cards are advised to shop around and compare offerings.