Monday, April 4, 2011
Help For Those Who Use Check Cashing Services
Many of our contractors have labor forces who do not have bank accounts. When pay day comes, these hard working men and women are regular customers of check cashing services that can charge up to 3% to cash the employee's payroll check when valid ID is presented. That is essentially another tax on wages that the employee can ill afford.
Last week I was made aware of a product US Bank offers entitled "US Bank AccelaPay Card Program". The bank issues prepaid Visa debit cards to a company's employees and then funds the card via the ACH system. I'm unaware at this time of other banks offering a similar product, however as always please check around. The benefits of this product are numerous and are summarized here. This can also be marketed to prospective employees as a benefit should they not have a bank account. When I read through the document summarizing the benefits including the "additional features" section at the end, I was pleased with all it had to offer.
It's tough enough for these employees who in most cases are living paycheck to paycheck; having to face a 3% fee to have access to their pay seems unconscionable. This product provides an attractive alternative.
As always, I do not receive any compensation for any third party products/services mentioned in this blog...
Posted by Glenn Carniello, CPA CCIFP at 4:50 PM
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