Paychecks that Cost You Money

I recently went to work for a company that actually pays me by depositing my paycheck on a card, which I then activate and can access my money. It sounded like a great way to get paid until I saw the fee schedule and the other rules and regulations regarding the use of this paycheck card.

After activation, it will cost me $2.95 per month to maintain the card. This fee is not charged to my employer. The fee is taken from my paycheck card.

I can access my money in several ways. I can take my money out at an ATM, but if the ATM is not the one the card is connected to, I will pay $1.50 for each withdrawal along with whatever charge the ATM I access charges.

If I check my balance before I make a withdrawal at the ATM, I will be charged $1.50. If I am not sure of my balance and try to withdraw more than is available on the card I will be charged $1.50 because my withdrawal should be declined. If I overdraw my card, there is a $10 fee, so I have to be careful because some ATM machines will give cash even if there are insufficient funds. It is a debit card and being overdrawn should be impossible, but I have seen this happen.

Another way to access my pay is to go shopping and take a cash withdrawal at the checkout. It will cost me an additional 25 cents for making a purchase with my card and using my pin number, but if I do a signature debit transaction, it will not cost me extra. I can only presume that taking a cash withdraw at the checkout costs $1.50 because it does not really state what the charge is in the fee schedule. If I pay by using the point of sale signature and take a cash advance, it will cost an additional $5.

If I want a paper copy of my deposits and withdraws mailed to me, there is a $2.95 charge, but I can check my monthly statement online for no charge.

If I need a check to pay a bill, I will be charged a dollar if I use an operator assistant to help me. If I do it myself online it won't cost me, but I was only given three checks. Once I use them, I will probably be charged the dollar fee for each check I need to write. The fee schedule is unclear on how to get new checks or what the fee is for them.

Another catch is that I can only withdraw up to $400 per day. I will have to either pay my bills using their checks, which I will probably be charged for, or it will take me several withdrawals to be able to pay all my bills.

Daily purchases cannot exceed $600. If I need to buy a refrigerator in an emergency, I am out of luck.

There are some other catches to using the paycheck card that I will not even go into about litigation and responsibility, legal stuff, but you should have gotten the idea by now that no employer should ever subject their employee to having to jump through hoops just to get their paycheck.

I was not offered another way of getting paid, such as by a paper check or direct deposit. It was this paycheck card or no paycheck. I chose this paycheck card because I had no other option, but I will tell you that I haven't even gotten my first deposit on the card and I have taken another job. I refuse to work for an employer who would make you pay to get your own paycheck.

If this option is offered to you, turn it down. The only ones who will benefit by using this paycheck card are your employer and the company that issues it. I work hard for my money as I am sure you do. Don't let someone make you pay to get money that is owed to you.