APA, NCLC Show Support of Payroll Cards (Aug. 1, 2013)
Aug. 1, 2013
With prepaid payroll cards the subject of negative press and increasing regulatory scrutiny over the past several weeks, groups representing low-income consumers and payroll administrators have expressed support for the products, noting that payroll cards can offer unbanked workers an economical, safe and convenient way to receive their wages.
In a release earlier this week, the American Payroll Association (APA) and National Consumer Law Center (NCLC) said that, when properly administered and adhering to the correct guidelines, payroll card programs can be highly beneficial for both employers and employees.
Among the key requirements of a useful payroll program are: employees being able to access their full wages in cash at least once per pay period without fees; employees having a choice of wage payment method and easily being able to change it; employers offering a payroll card that is widely accepted; clear information and training on the use of the payroll card and possible fees; and free and convenient access to account information. “We believe that well-designed payroll card programs can live up to their promise, benefitting both employees and employers,” the organizations said.
The support from APA and NCLC comes weeks after payroll cards were criticized in a New York Times article and came under scrutiny by the N.Y. attorney general and 16 U.S. senators based on what critics claim are high fees and pressure on employees to enroll.