That is probably one of the dumber moves I've seen Corporate do lately. Here's a couple of questions that a site posted about Payroll Cards like this...
"Do I get the same consumer protections with the payroll card that I would have with a card tied to a checking account? Federal law protects consumers with bank accounts when electronic funds transfers are made. It sets limits on how much money you can lose if a card linked to your bank account is stolen and used by a thief. Federal law also requires that your bank must “recredit”, that is, return funds removed from your bank account by theft or by mistake within 10 business days, unless the bank can show that there was no theft or mistake. The Federal Electronic Fund Transfer Act provides these protections. Since July 1, 2007, federal law gives you these protections, other than a monthly statement, for a payroll card established by an employer to deliver recurring wages, salary, or other employee compensation.
You may be told that you will be protected from theft by a VISA or MasterCard “zero liability” policy. The VISA and MasterCard policies do not give you the same protection as the federal Regulation E protections. The VISA and MasterCard policies have exceptions. These policies don’t give you zero liability in all cases. For example, MasterCard’s policy does not apply if a card is used more than two times in one year to steal from you. VISA’s “zero liability” policy does not apply when the card is used at an ATM. VISA’s policy also does not protect you if the card is used “outside the VISA system.” Retailers choose whether to process a purchase made with the card through VISA or through a different processor. VISA’s “zero liability” policy says it doesn’t apply if your card is used by a thief at an ATM or at a retailer that doesn’t process the card through VISA."
So if somebody steals your wallet, instead of having Target reprint you a paycheck like the old days, then it's just too bad. This is one heck of a way to save money on ink. Telling your employees that they aren't good enough to bother giving them a paycheck.
Here are some of the possible fees that some team members may have to deal with:
• A fee after a certain number of transactions.
• A fee for using the card at an ATM.
• A surcharge to the ATM owner.
• A POS fee for use at a point of sale such as a store.
• A fee for not using the card for a period of time (inactivity fee).
• A fee to replace the card.
• A fee when funds are put on the card account (load fee).
• A fee to get your money back by check if you don’t like the card.
