McDonald's Worker Says She Was Required to Receive Pay on Fee-Laden Debit Card

[radcen]

They have that option, and they'd be fools to exercise it. A business that doesn't take plastic would see enough business dry up that they wouldn't balk at the miniscule fees involved.

Totally agree. Studies have shown conclusively that sales go up when a business starts taking credit cards. Overall sales and average sale per purchase. In other words, there's significant added value to taking credit cards, so the complaints about the fees are silly.

I was just pointing out that if the credit card fees really bother them that much, they do have the option to take cash and/or check only, whereas the employees in the linked article do not have an option regarding their paychecks.

 

[SassySmartie]

Yeah she has a bank account.



Banks would much rather direct deposit, as would employers. So much easier, faster. Every time I've ever gotten paid by direct deposit, I never had issue with payroll, and it was usually 2 days earlier than everyone else.

I still think that there's more to this than meets the eye. The franchise owners, or McDonalds, have no reason to not let hourly employees be paid by direct deposit. It makes no sense.

I'd wonder if the debit card company is kicking back a percentage of the fees to McDonalds for every employee signing up for the debit card, as an incentive to McDonalds to use their card. My hospital went to direct deposit or debit about 4 years ago. Employees were required to set up an account at the bank of their choice (if the didn't already have one) in order to get paid. Those that choose not to use a bank, get paid via a pre-paid debit card. The payroll debit my hospital offered was free to use as a debit card and offered and I think no fees other than what an ATM will charge (IOW ATM fee, not a fee from the debit), but I'm not sure since I have an account and was already receiving direct deposit.

 

[Cephus]

They have that option, and they'd be fools to exercise it. A business that doesn't take plastic would see enough business dry up that they wouldn't balk at the miniscule fees involved.

Exactly. They'd lose my business right away. I only use plastic. If a store doesn't take it, I go elsewhere. If a store tries to charge me more for it, I go elsewhere. I have all the power, they either cater to me or they lose my business.

 

[Mr.Nick]

They have that option, and they'd be fools to exercise it. A business that doesn't take plastic would see enough business dry up that they wouldn't balk at the miniscule fees involved.

Those fees are nonsense. Why should a business have to pay a lender/bank to accept their card? you'd think the lender/bank would be paying the business for that privilege - or at least not charge at all.

I'm not anti-bank either.

 

[Gipper]

Those fees are nonsense. Why should a business have to pay a lender/bank to accept their card? you'd think the lender/bank would be paying the business for that privilege - or at least not charge at all.

I'm not anti-bank either.

Ease, convenience, and the ability to attract customers like me that use a debit card for 99% of transactions.

 

[Mr.Nick]

Ease, convenience, and the ability to attract customers like me that use a debit card for 99% of transactions.

But businesses shouldn't have to pay a bank/lender to accept their cards.... The idea that a business should have to pay to accept a card that is already collecting interest is wrong - not only that but it hurts small businesses.

Either way the consumer is paying for those charges either through product retail cost or add on charges.

 

[Gipper]

But businesses shouldn't have to pay a bank/lender to accept their cards.... The idea that a business should have to pay to accept a card that is already collecting interest is wrong - not only that but it hurts small businesses.

Either way the consumer is paying for those charges either through product retail cost or add on charges.

They don't have to. They can always refuse the service and have a "come what may" attitude.

Maybe they'll survive. They're more than welcome to find out.

 

[Mr.Nick]

They don't have to. They can always refuse the service and have a "come what may" attitude.

Maybe they'll survive. They're more than welcome to find out.

Of course they have the right no to accept debit or credit cards, but no business in their right mind would do that considering 90%+ of business is via debit or credit card.

That still doesn't change the fact that (at least I) think it's wrong for banks/lenders to charge a business a fee for accepting their cards.

That would be like Coca Cola (or a vendor) charging a store a fee (or demanding that their products be sold on consignment) for carrying their products because their products are in high demand...

 

[Gipper]

Of course they have the right no to accept debit or credit cards, but no business in their right mind would do that considering 90%+ of business is via debit or credit card.

That still doesn't change the fact that (at least I) think it's wrong for banks/lenders to charge a business a fee for accepting their cards.

That would be like Coca Cola (or a vendor) charging a store a fee (or demanding that their products be sold on consignment) for carrying their products because their products are in high demand...

Not familiar with the term "mark-up"?

 

[Mr.Nick]

Not familiar with the term "mark-up"?

I'm not quite sure what you mean.

 

[specklebang]

Why do any of you use debit cards instead of credit cards? I use my Amazon Visa for everything and get points to spend at Amazon. What purpose is the debit card for? They always offer me one but I don't want one.

Am I missing something?

 

[radcen]

Those fees are nonsense. Why should a business have to pay a lender/bank to accept their card? you'd think the lender/bank would be paying the business for that privilege - or at least not charge at all.

I'm not anti-bank either.

Services cost money. You don't think the employees at VISA volunteer their time, do you?

 

[Mr.Nick]

Services cost money. You don't think the employees at VISA volunteer their time, do you?

That's why they charge interest and fees themselves to their customers - that was how they made their money in the first place. Then they decided they would charge stores money to take their card..

IMO, there is no justification for charging a store whatsoever considering they're the ones allowing customers to use their cards hence they make more money.

If I'm charging you interest on what you buy as a lender/bank why the hell would I charge a business to accept my card as a lender/bank?

If anything lenders/banks should be competing with one another with who can provide the best interest to the consumer using their card at a particular business... Instead they went the other way.

 

[radcen]

That's why they charge interest and fees themselves to their customers - that was how they made their money in the first place. Then they decided they would charge stores money to take their card..

IMO, there is no justification for charging a store whatsoever considering they're the ones allowing customers to use their cards hence they make more money.

If I'm charging you interest on what you buy as a lender/bank why the hell would I charge a business to accept my card as a lender/bank?

If anything lenders/banks should be competing with one another with who can provide the best interest to the consumer using their card at a particular business... Instead they went the other way.

To make even more money.

 

[Your Star]

Yeah this is really ****ed up. Hope she wins, and this franchise pays a big price.

 

[Mr.Nick]

To make even more money.

I don't understand how that makes the banks more money.

Many businesses don't carry all cards, and many businesses in some areas don't accept any cards (ghetto).

IMO, the card companies would make more money if they gave a reduced interest rate for using their card and not charging businesses for accepting their card.

You make money by giving an incentive rather than create a barrier.

 

[ttwtt78640]

McDonald's Worker Says She Was Required to Receive Pay on Fee-Laden Debit Card

McDonald's Worker Says She Was Required to Receive Pay on Fee-Laden Debit Card

The Texas workforce commission pays their unemployment benefits only via these fee heavy debit cards through Chase bank. I always went to the local Chase bank branch and withdrew all of my UI funds in cash thus avoiding the fees. They give you only two "free" transactions for each bi-weekly deposit with any other use of the card incurring fees (sometimes both a "user" fee at Chase bank and a "foreign" ATM fee for a single "additional" use).

 

[Mr. E]

Employers should always offer cash or check as well as direct deposit in my opinion. They are paying you for wages earned and shouldn't have the right to dictate what form that currency is. At the very least there should always be a cash option (checks to an extent serve this purpose). Forcing someone to spend money (through fees or a bank account) to gain access to money already earned is an undue burden on the employee (especially those making minimum wage).

 

[Superfly]

Exactly. They'd lose my business right away. I only use plastic. If a store doesn't take it, I go elsewhere. If a store tries to charge me more for it, I go elsewhere. I have all the power, they either cater to me or they lose my business.

Same. I rarely, rarely carry cash. Always less than $20, and even then, that's rare. I pay for everything with my debit card. If I were to walk into a place where they didn't take debit or credit, I'd turn around and walk right back out - after I told them why I was taking my business elsewhere.

 

[Threegoofs]

Why do any of you use debit cards instead of credit cards? I use my Amazon Visa for everything and get points to spend at Amazon. What purpose is the debit card for? They always offer me one but I don't want one.

Am I missing something?

Some people don't have the discipline to pay a credit card off each month.

I'm with you- credit cards are like a free gift- they pay me $1000 per year to use their card. Haven't paid a fee in years.

 

[Homer.]

Americans have to pay a fee to use an ATM machine?? Wow.

If you don't have an account there, yes. Usually, it's no fee for any bank in which you have an account. You can usually walk into a bank and get money from your card with no fee, account or not.

I wonder if US banks have thought about copying the UK system, where anyone can use any bank's ATMs without a charge whether you have an account with that bank or not.

 

[Cephus]

I wonder if US banks have thought about copying the UK system, where anyone can use any bank's ATMs without a charge whether you have an account with that bank or not.

Why would they do that? There are costs involved in providing an ATM, costs that have to be paid. They are funded by customers and by fees charged to non-customers.

 

[tech30528]

But businesses shouldn't have to pay a bank/lender to accept their cards.... The idea that a business should have to pay to accept a card that is already collecting interest is wrong - not only that but it hurts small businesses.

Either way the consumer is paying for those charges either through product retail cost or add on charges.

When I print up an invoice there is a line near the bottom that says "environmental fees". It is not actually an environmental fee, it covers my credit card processing costs. But it is an auto repair place so it seems perfectly reasonable. Fact is there are no environmental costs for me. The only thing I pay to dispose of (besides the garbage dumpster which is $75 a month) is tires and there is a separate charge for that when you buy tires. My antifreeze is picked up and recycled, I sell my used oil and scrap metal, even the parts boxes are burned for heat in the winter. But I don't pay for someone's choice of financial tools and I don't have any credit cards either personally or for the business.

 

[Bob Blaylock]

When I print up an invoice there is a line near the bottom that says "environmental fees". It is not actually an environmental fee, it covers my credit card processing costs. But it is an auto repair place so it seems perfectly reasonable. Fact is there are no environmental costs for me.

That seems rather like outright fraud to me, charging a customer a “fee” while lying about the purpose of that fee. It'd be one thing if you were honest about it, and told the customer that because it cost you more to process his payment by credit card, that you were going to charge him an extra fee to cover that cost. I'm not sure that's legal, but at least it'd be honest. To call it an “environmental fee” is just lying.

If you're going to engage in that sort of dishonesty about how you charge a customer, then what confidence can or should a customer have that you're not ripping him off in other ways more directly related to the service you are supposedly selling?

 

[Homer.]

Why would they do that? There are costs involved in providing an ATM, costs that have to be paid. They are funded by customers and by fees charged to non-customers.

Why wouldn't they? It works great in the UK and many other countries. The costs involved in operating an ATM are a lot lower for banks than human tellers, and can be absorbed by the banks.
If you are happy with being charged a fee from another bank for using it's ATMs then fine, but it doesn't have to be that way.