The 21st century paycheck

When I was a working man, I got paid by check (either handed to me or direct deposited in my bank) or, when I was very young, in cash. Workers in the 21st century have an additional option: prepaid cards which can be cashed at an ATM.  Being an old reprobate who likes cashing checks, I can't understand why this practice is widespread enough that at least 4,600,000 workers - many of whom work in restaurants or retail stores - are paid this way.  I had never heard of this practice until I read Sparrow Chat, a very interesting blog written by RJ Adams.

The fundamental problem with these cards from a worker's point of view is that in most cases fees have to be paid by the worker.  For example, withdrawing money using the ATM typically costs $1.75.  And if you're old-fashioned enough to want a paper statement, that's another $2.95 you give the bank.  Don't lose the card as it will cost you $6 to replace it.  Some users even have to pay $7 inactivity fees for not using their cards.You may think these fees are small, but if you're making minimum wage, they are a significant percentage of your wages.

Some workers have a choice as to how they are paid.  Both choices are expensive.  They can pay a fee to cash their check at a check-cashing service.  Or, they can take the card.  Neither way is the way we should treat people in this country.