Today's "Let's See How We Can Fuck Over the American Worker" Thread

[Zanza]

I wonder how any system can be cheaper than direct deposit. Put the account information in your HR/finance software and let a job do all the direct deposits each month. Are there fees for direct deposits in the US?
I would expect that preparing and distributing physical paycards is always the more expensive solution than a direct deposit.

I could see the case when you have just very few employees and maybe no software, but the articles referred to McDonald's etc., not small mom-and-pop stores.

[Admiral Yi]

Are there fees for direct deposits in the US?

You mean charged by the receiving bank?  Never heard of them, would be surprised if there were.

[Zanza]

No, fees by your own bank when do a direct deposit.

[Admiral Yi]

No, fees by your own bank when do a direct deposit.

That's what I meant too.  Not aware of any.

As a matter of fact most places I've banked have offered deals (such as waiving monthly fees or balance requirements) when you sign up for direct deposit.

[garbon]

No, fees by your own bank when do a direct deposit.

That's what I meant too.  Not aware of any.

As a matter of fact most places I've banked have offered deals (such as waiving monthly fees or balance requirements) when you sign up for direct deposit.

Yep. I think one's own bank is generally happy to have you setup on direct deposit as that means they have a guaranteed influx in cash in your account.

[Admiral Yi]

Yep. I think one's own bank is generally happy to have you setup on direct deposit as that means they have a guaranteed influx in cash in your account.

I'm guessing the biggest incentive is no teller needed to handle your paper deposit.

[garbon]

Ah yeah, that makes sense.

[garbon]

Ah here's another bit I found on why:

1. Automated services help lessen work on the teller line. Time that used to be spent waiting on customers depositing checks can be used elsewhere or eliminated. This is the same reason institutions will push debit/ATM cards and Internet/mobile banking.

2. Direct deposit builds customer attachment to the institution. The more attachment a customer has, the less likely he is to switch institutions. Part of this is because, as Blue Jello Elf explains, switching direct deposit is a pain.

3. The guaranteed stream of deposits also helps boost an institution's balance books.

Though I'm not sure how much of a hassle it is to switch direct deposit. I don't remember getting my panties in a twist when I switched my direct deposit account at one of my jobs.

[Zanza]

No, fees by your own bank when do a direct deposit.

That's what I meant too.  Not aware of any.

As a matter of fact most places I've banked have offered deals (such as waiving monthly fees or balance requirements) when you sign up for direct deposit.

No, I meant are there any fees for the employer from his bank when he does direct deposits into his employee's accounts?

At least for private customers here, depositing money into someone else's bank account in the European Union is free. Not sure if employers pay a fee, but I doubt they would pay one per transaction, probably rather that they pay a general fee for all banking services.

[Admiral Yi]

No, I meant are there any fees for the employer from his bank when he does direct deposits into his employee's accounts?

Don't know.  But even if there were, shouldn't they be charging the same to move the money to the various payroll card accounts?

Too bad we don't have a poster who works in HR. 

[Caliga]

Too bad we don't have a poster who works in HR. 

Yeah, it's a damn shame.

[dps]

HOLD ON.  WORK IN PROGRESS!

Pages 9 and 17.

Page 9:

* The majority of payroll disbursements have been converted to direct deposit.
* Most non-direct deposit payroll disbursements are made via paper check.

Page 17:

* Corporates place significant importance on electronifying payroll processes.
* Payroll card adoption is still in its early stages, but corporates indicate knowledge about payroll cards is increasing.
* Efficiency gains and reduced costs drive adoption of payroll card programs.
* Blah blah blah
* Blah blah blah

Also, if this new system of delivering payroll wasnt not less expensive than direct deposit - why would business be interested in using it for anyone other than transient workers?

I would think to accommodate employees who don't have bank accounts.  As I said, my employer offers the pay card option but tells everyone it sucks.

Yeah, that's been my experience--employers want their employees to set up direct deposit because it's the simplest, least expensive system for both the employer and the employee.  They offer paycards to accomodate those employees who don't have a checking account (or who do, but for some reason refuse to use it for direct deposit--I know a few people who have checking accounts but refuse to sign up for direct deposit for various reasons).

[CountDeMoney]

I know a few people who have checking accounts but refuse to sign up for direct deposit for various reasons).

And what reasons could these moochers, sponges, deadbeats, boneheads and obvious minorities possibly have to refuse to sign up for direct deposit, the very engine that makes this economy run?

[dps]

I know a few people who have checking accounts but refuse to sign up for direct deposit for various reasons).

And what reasons could these moochers, sponges, deadbeats, boneheads and obvious minorities possibly have to refuse to sign up for direct deposit, the very engine that makes this economy run?

Hiding part of their income from there spouses is probably the most common reason.

[CountDeMoney]

Unheard of!