Prepaid Cards: High Fees for Low Wages
When payday rolls around, more and more workers aren’t getting paper paychecks or direct deposits to their checking accounts, but instead are finding their wages on prepaid cards.
The new trend—especially prevalent in low-wage industries—saves the employer money, and means big (and mostly unregulated) profits for the banks and financial institutions that issue the cards. It also eats big chunks of the workers’ pay though a bevy of fees they must pay to access their accounts.
