Wal-Mart, the extremely large retail chain that I work for part time is set to change how they pay their employees.
Many employees, for whatever reason, take a paper check instead of direct deposit. Many of those people do not have a checking account- maybe they don't make enough, poor credit or they don't want one.
So, to get rid of the paper check, employees will either have to have direct deposit or they will be issued a debit card. Wal-Mat will put money in the debit card and you can use it as just like a credit/debit card. You will not get any intrest and if you lose it, you are responsible for the first $50. There are some fees such as an ATM fee. You get 1 free ATM withdrawal and then it is a $2 fee.(current fee is $1) You can get money back is you go and shop to Wal-Mart or Sam's Club.
Now for the down side. Wal-Mart is going to make a ton of interest money off the money that is not spent. For instance, Wal-Mart has well over employees and if each employee averages about $100 at the end of the month they don't spend, Wal-Mart will $100,000,000 they can make interest off of.
In addition, big brother is watching us. As an employer, Wal-Mart will be able to see where we spend our money. What if we go to a competitor? Will they hold that against us at evaluation time? What if we go to a shop that Wal-Mart disapproves of, like a porn shop? Will they hold that against the porn shop visitors?
Wal-Mart already has the ability to track what we buy when we shop at Wal Mart because we have a discount card. Every time we go shopping, Wal-Mart computers can see what we are buying. I can't prove it, but what if an employee bought too much booze and beer? What will stop them from sending a red flag to the local store? Don't know, but I don't take the chance.
Now that Wal-Mart is going to try this, what is stop other companies and governments from doing this? What will prevent local, state and federal governments from issuing debit cards to pay their employees? What is to stop a large or medium private company from doing the same? Nothing.
So, is this the way of the future? Is this something your employer will want to do and would you go along? Of course, you do have a 3rd option- not work at Wal-Mart.
Wal-Mart- leading the way for good or for the bad.
