My paycheck bounced.

[Peak]

One question here. I guess this is the US, and the check is a paper thing you trade for real money.

Why still checks? Any logical reason beyond "it have always been so"?

Around here, the money just arrives on the account in the bank you have the account in. Seems like a lot more streamlined approach. The money arrives at midnight on pay day, and you can start paying the bills directly in the middle of the night if you like.

Ah, and the answer arrived when I was writing, I see...

 

[RoJoHen]

Direct Deposit costs extra? I didn't realize that.

If you have 25 employees who use 20 different banks, the employer has to have someone make sure that the right pay goes to the right accounts. Just printing a bunch of paper checks and handing them out avoids having to pay someone to make sure all the electronic routing is correct.

I dunno, at my last two jobs I just input my own checking info in the computer and the paychecks were transferred automatically. No extra work at all.

 

[Jan]

Did you know that using your Debit Card costs the business as well? 1-2% of the transaction price for the convenience of not using cash.

^Yeah, One of my old banks told me to select Credit on the screen to avoid that.

That doesn't stop any charges that the business has to pay. In fact, as I recall credit transactions cost the business more than debit transactions. Especially if you've got a 'rewards' card.

In some cases, such as the restaurant, chances are that the business hasn't transferred the funds into the payroll account. I worked for a business like that once. I literally had to call the home office to make sure that they'd done the payroll transfer before I handed out paychecks. When they started lying about having done the transfer was when I got another job.

Jan

 

[Crusher Disciple]

In some cases, such as the restaurant, chances are that the business hasn't transferred the funds into the payroll account. I worked for a business like that once. I literally had to call the home office to make sure that they'd done the payroll transfer before I handed out paychecks. When they started lying about having done the transfer was when I got another job.

Jan

Oh, good Lord! That sounds horrible.

But it the business really doesn't have any money, and if they're about to file for bankruptcy, is there any way the employees can get the money they're owed on the paychecks at least?

 

[John Picard]

Did you know that using your Debit Card costs the business as well? 1-2% of the transaction price for the convenience of not using cash.

^Yeah, One of my old banks told me to select Credit on the screen to avoid that.

That doesn't stop any charges that the business has to pay. In fact, as I recall credit transactions cost the business more than debit transactions. Especially if you've got a 'rewards' card.

In some cases, such as the restaurant, chances are that the business hasn't transferred the funds into the payroll account. I worked for a business like that once. I literally had to call the home office to make sure that they'd done the payroll transfer before I handed out paychecks. When they started lying about having done the transfer was when I got another job.

Jan

Right. I just get tired of people here who jump, yell, scream, and holler, "WTF!>!>!?!?!111 This is the twenty-first Century and people are still yoosing monies " without first understanding how the entire process works.

 

[SeerSGB]

Some of the small mom-and-pop stores (gas stations, and grocery stores) around here have stopped taking credit-cards and checks, cash only. There's a Ace Hardware that won't even take a check or credit-card for less than a $25, pre-tax, purchase.

 

[Plecostomus]

Not everyone has a bank account either. The rules post 9-11 about creditworthyness and establishing a bank account have made it so certain classes of people (those behind, in debt or other financial trouble) those people with less that perfect credit... cannot get bank accounts.

I was told this was to stop illegals from setting up accounts to transfer money overseas... no/bottom credit score no bank account. It was also intended to stop terrorists from popping over here setting up a bank account and using it to fund attacks.

All bullshit answers really it has to do with steering the people who can least afford it into the highest cost/highest risk product lines like Green Dot Cards and Check Cashing Services.

 

[Amaris]

Not everyone has a bank account either. The rules post 9-11 about creditworthyness and establishing a bank account have made it so certain classes of people (those behind, in debt or other financial trouble) those people with less that perfect credit... cannot get bank accounts.

I was told this was to stop illegals from setting up accounts to transfer money overseas... no/bottom credit score no bank account. It was also intended to stop terrorists from popping over here setting up a bank account and using it to fund attacks.

All bullshit answers really it has to do with steering the people who can least afford it into the highest cost/highest risk product lines like Green Dot Cards and Check Cashing Services.

When I worked for Dell, I always had my money direct deposited to my Green Dot account. Never had any problems.
The Direct Deposit was free, if I deposited more than $600 a month, all fees were waived, and I always DD'd at least that much, so it worked out.

J.

 

[Tribbles]

I'm so sorry, Plecostomus. I worked for a crappy local rip-off of Chuck E. Cheese's that expanded way too quickly and soon went under. In the meantime, they bounced not one, but TWO of my paychecks.

On top of that, I was a poor college student with no money in my account, so when the checks bounced, it overdrew me. They compensated me both times, but after the second time, I handed in my walking papers. I probably should have done so the first time, in retrospect...

 

[Plecostomus]

Not everyone has a bank account either. The rules post 9-11 about creditworthyness and establishing a bank account have made it so certain classes of people (those behind, in debt or other financial trouble) those people with less that perfect credit... cannot get bank accounts.

I was told this was to stop illegals from setting up accounts to transfer money overseas... no/bottom credit score no bank account. It was also intended to stop terrorists from popping over here setting up a bank account and using it to fund attacks.

All bullshit answers really it has to do with steering the people who can least afford it into the highest cost/highest risk product lines like Green Dot Cards and Check Cashing Services.

When I worked for Dell, I always had my money direct deposited to my Green Dot account. Never had any problems.
The Direct Deposit was free, if I deposited more than $600 a month, all fees were waived, and I always DD'd at least that much, so it worked out.

J.

See now, I've heard otherwise....

 

[Crusher Disciple]

I'm so sorry, Plecostomus. I worked for a crappy local rip-off of Chuck E. Cheese's that expanded way too quickly and soon went under. In the meantime, they bounced not one, but TWO of my paychecks.

On top of that, I was a poor college student with no money in my account, so when the checks bounced, it overdrew me. They compensated me both times, but after the second time, I handed in my walking papers. I probably should have done so the first time, in retrospect...

I used to work for a quasi private/ public library. My very first paycheck NEVER went though the system, and I was 150 miles away and unknowingly bouncing checks like crazy. They blamed the payroll company, but it happened again a few months later. I, too, should've walked when that happened.

 

[Colonel Green]

Did you know that using your Debit Card costs the business as well? 1-2% of the transaction price for the convenience of not using cash.

^Yeah, One of my old banks told me to select Credit on the screen to avoid that.

That doesn't stop any charges that the business has to pay. In fact, as I recall credit transactions cost the business more than debit transactions. Especially if you've got a 'rewards' card.

In some cases, such as the restaurant, chances are that the business hasn't transferred the funds into the payroll account. I worked for a business like that once. I literally had to call the home office to make sure that they'd done the payroll transfer before I handed out paychecks. When they started lying about having done the transfer was when I got another job.

Jan

Right. I just get tired of people here who jump, yell, scream, and holler, "WTF!>!>!?!?!111 This is the twenty-first Century and people are still yoosing monies " without first understanding how the entire process works.

I used to work at a shipyard. Everytime contract negotiations came up, the employer INSISTED that mandatory direct deposit be included. The unions always refused, as cheques allowed our more scummy members to avoid debtors.

Why would they have wanted the switch if not to reduce costs? Printing cheques costs money too.

 

[SeerSGB]

Not everyone has a bank account either. The rules post 9-11 about creditworthyness and establishing a bank account have made it so certain classes of people (those behind, in debt or other financial trouble) those people with less that perfect credit... cannot get bank accounts.

I was told this was to stop illegals from setting up accounts to transfer money overseas... no/bottom credit score no bank account. It was also intended to stop terrorists from popping over here setting up a bank account and using it to fund attacks.

All bullshit answers really it has to do with steering the people who can least afford it into the highest cost/highest risk product lines like Green Dot Cards and Check Cashing Services.

When I worked for Dell, I always had my money direct deposited to my Green Dot account. Never had any problems.
The Direct Deposit was free, if I deposited more than $600 a month, all fees were waived, and I always DD'd at least that much, so it worked out.

J.

See now, I've heard otherwise....

There's fees on green-dots if you don't do enough transactions or carry "X" balance a month-- not to different than some checking accounts and credit cards. If you load up online or by direct deposit, it's usually free. If you reload at a store, yeah there's a charge.

 

[John Picard]

That doesn't stop any charges that the business has to pay. In fact, as I recall credit transactions cost the business more than debit transactions. Especially if you've got a 'rewards' card.

In some cases, such as the restaurant, chances are that the business hasn't transferred the funds into the payroll account. I worked for a business like that once. I literally had to call the home office to make sure that they'd done the payroll transfer before I handed out paychecks. When they started lying about having done the transfer was when I got another job.

Jan

Right. I just get tired of people here who jump, yell, scream, and holler, "WTF!>!>!?!?!111 This is the twenty-first Century and people are still yoosing monies " without first understanding how the entire process works.

I used to work at a shipyard. Everytime contract negotiations came up, the employer INSISTED that direct deposit be included. The unions always refused, as cheques allowed our more scummy members to avoid debtors.

Why would they have wanted the switch if not to reduce costs?

Heh! Labor Unions -- Gotta love 'em. Direct Deposit is cheaper for a larger employer and it is more convenient. Again, it's all Economies of Scale. Get your local Mom & Pop place to process payroll using Direct Deposit and that place will spend a fortune. I know someone who owns a machine shop who breaks out the company checkbook every Friday to pay his guys -- all four of them.

 

[QuasarVM]

Took a vacation day decided to cash my check and go shopping.

Bank informs me that my payroll check cannot be cashed because the issuer (Day Job) has no funds to cover it.

...needless to say I am VERY ANGRY.

Let me guess. You work for the Federal Government?

Boom!

Thank you! I'll be here all night, please tip your server!

TRUE!!

But no...that can't be possible since Obama tell us the economy is on the rebound.

It MUST be true!

Anyway, pretty lame that this guy's check bounced. I'd be pissed beyond belief if that happened to me.

 

[SeerSGB]

Right. I just get tired of people here who jump, yell, scream, and holler, "WTF!>!>!?!?!111 This is the twenty-first Century and people are still yoosing monies " without first understanding how the entire process works.

I used to work at a shipyard. Everytime contract negotiations came up, the employer INSISTED that direct deposit be included. The unions always refused, as cheques allowed our more scummy members to avoid debtors.

Why would they have wanted the switch if not to reduce costs?

Heh! Labor Unions -- Gotta love 'em. Direct Deposit is cheaper for a larger employer and it is more convenient. Again, it's all Economies of Scale. Get your local Mom & Pop place to process payroll using Direct Deposit and that place will spend a fortune. I know someone who owns a machine shop who breaks out the company checkbook every Friday to pay his guys -- all four of them.

Doesn't stop the banks from selling the bill of goods to small-businesses. When I was running my business, it was me, the wife, and maybe AT MOST 1 other person to handle overflow. Lordy, did the bank push the whole direct-deposit/payroll services-- at a "modest" fee of course.

 

[John Picard]

I used to work at a shipyard. Everytime contract negotiations came up, the employer INSISTED that direct deposit be included. The unions always refused, as cheques allowed our more scummy members to avoid debtors.

Why would they have wanted the switch if not to reduce costs?

Heh! Labor Unions -- Gotta love 'em. Direct Deposit is cheaper for a larger employer and it is more convenient. Again, it's all Economies of Scale. Get your local Mom & Pop place to process payroll using Direct Deposit and that place will spend a fortune. I know someone who owns a machine shop who breaks out the company checkbook every Friday to pay his guys -- all four of them.

Doesn't stop the banks from selling the bill of goods to small-businesses. When I was running my business, it was me, the wife, and maybe AT MOST 1 other person to handle overflow. Lordy, did the bank push the whole direct-deposit/payroll services-- at a "modest" fee of course.

Good, another example. I'm just trying to point out here to the people who are in utter shock that DDS isn't widely available for specific reasons. Hell, I quickly adopted DDS when I was in the military in the late-1980's. As a matter-of-fact, when I was getting out of the Navy, the military was getting ready to implement mandatory DDS in order to streamline operations and reduce costs. If a service member didn't have a bank account, then the military would issue a type of debit card and load it each payday.

 

[Amaris]

Heh! Labor Unions -- Gotta love 'em. Direct Deposit is cheaper for a larger employer and it is more convenient. Again, it's all Economies of Scale. Get your local Mom & Pop place to process payroll using Direct Deposit and that place will spend a fortune. I know someone who owns a machine shop who breaks out the company checkbook every Friday to pay his guys -- all four of them.

Doesn't stop the banks from selling the bill of goods to small-businesses. When I was running my business, it was me, the wife, and maybe AT MOST 1 other person to handle overflow. Lordy, did the bank push the whole direct-deposit/payroll services-- at a "modest" fee of course.

Good, another example. I'm just trying to point out here to the people who are in utter shock that DDS isn't widely available for specific reasons. Hell, I quickly adopted DDS when I was in the military in the late-1980's. As a matter-of-fact, when I was getting out of the Navy, the military was getting ready to implement mandatory DDS in order to streamline operations and reduce costs. If a service member didn't have a bank account, then the military would issue a type of debit card and load it each payday.

Dell was all about Direct Deposit. We actually set up our Direct Deposit as soon as we went to orientation classes. There were reps from 5/3 and Chase Bank who opened accounts for everyone, on the spot.

If, by some miracle, you didn't get a Direct Deposit account, you had two weeks to get one or you would start getting your check on a monthly basis for six months, then you would be "advised" to get an account.

J.

 

[Jan]

But it the business really doesn't have any money, and if they're about to file for bankruptcy, is there any way the employees can get the money they're owed on the paychecks at least?

IANAL but I've always understood that payroll and pensions (and benefits possibly) generally have first call for any funds that become available from a bankruptcy liquidation. If they honest-to-pete don't have any money or assets, I think the employee is out of luck just like any other creditor.

Jan

 

[Crusher Disciple]

But it the business really doesn't have any money, and if they're about to file for bankruptcy, is there any way the employees can get the money they're owed on the paychecks at least?

IANAL but I've always understood that payroll and pensions (and benefits possibly) generally have first call for any funds that become available from a bankruptcy liquidation. If they honest-to-pete don't have any money or assets, I think the employee is out of luck just like any other creditor.

Jan

Oy.

I was hoping the law had some kind of protection for wages.