Walmart's workers no longer getting paychecks (but it's not how it sounds...)
Filed under: Banks
On the heels of a bill-paying service for its customers, Wal-Mart Stores Inc. has announced that employees will no longer be receiving paychecks.But wait, it's not as bad as it sounds. In fact, it's quite good.
Walmart will be paying all of its employees through direct deposit, and for those who don't have a bank account -- and this is where things get decidedly 21st century -- they will instead receive their money in a debit card.
The paper paychecks is what's going out the proverbial window. It's part of what the company calls the "Walmart Sustainability Commitment," where the chain is in the midst of trying to be supplied by only renewable energy, create zero waste and sell environmentally friendly products.
That it will save a mountain of money by no longer printing paper checks for 2.1 million employees around the world is a nice side benefit, but undeniably more than a few trees will also be saved.
There's also another benefit. People who work at Walmart and don't have a checking account -- the "unbanked," they're often called -- will no longer have to go somewhere to cash their checks and lose a portion of their paycheck to a third party. They'll get it all on their prepaid fee-free Debit Mastercard.
One can only wonder if other major retail corporations will eventually follow suit, and if that might inspire other smaller companies to forgo paper checks and instead do direct deposit, which would surely please America's contract employees, freelance writers and solopreneurs who often rely on the postal service to bring their checks. "The check is in the mail," since it often isn't in the mail, has to be one of the more dreaded sentences contract workers hear.
On the other hand, maybe this new development just foreshadows that someday instead of paper checks, companies will just follow Walmart's example, and in an effort to delay sending out payment even longer, will mail their contract employees a prepaid debit card.
Which would take some getting used to. "The prepaid debit card is in the mail" doesn't quite roll off the tongue.
Money Clips
- HILARIOUS: Warren Buffet Plays Axl Rose in New Commercial - Huffington Post
- ON THE PLUS SIDE: Where Home Prices Are Rising - CNNMoney
- FRICTION: Could China Trade War Put Walmart Out of Business? - 24/7 Wall St.
- PROFILE: Opinionated Auto Industry Insider Dies - FORTUNE
- DON'T LAUGH: More Homeowners Turning to Fake Grass - SmartMoney
- HIT HARDEST: States Hurt Most From Rising Gas Prices - CNBC
- GET YOUR MONEY'S WORTH: Best Cars to Buy Used - CBS MoneyWatch
Reader Comments (Page 1 of 1)
9-04-2009 @ 6:31PM
Sally said...
"This is quite good"??? I couldn't disagree more. It's just one more example of the greedy Walton family finding yet another way to line their pockets at the expense of their workers who don't get squat for pay or benefits.
Direct deposit is a pain in the posterior, and debit cards--whether used to buy things or as a means of paying wages---are designed to do only thing: separate people from their money as quickly as possible.
How can anyone consider them safe following the recent theft of more than 170 million credit and debit card numbers? This is playing with fire. Do you really think the Waltons are going to reimburse everyone whose pay is wiped out by the identity theft crooks?
What we need are lawmakers who are willing to stand up to Corporate America and make these type of mandatory payment policies (direct deposit and payroll debit card) illegal. Payment by paper check should always be an option available to all employees everywhere.
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11-03-2009 @ 4:19PM
dan said...
idiot.
Direct deposit is great.
if your to stupid to know how to use it, thats your fault.
9-04-2009 @ 8:58PM
Sue said...
I work at a place that already does this but what they failed to mention in the article is that you get charged 40 cents every time you use that "debit" card so empty the card out as soon as you can for cash to keep as much of your hard earned money as you can. I had direct deposit which I'd rather have than these debit cards if anything to avoid these extra charges that all add up. We still got a paper copy of a "check" for our records too so all they saved was having to issue a live check to the employees since they still have to be able to show proof of payment in some kind of form.
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11-05-2009 @ 7:14AM
Tauheed said...
No actually the card is no charge to withdraw money in the store at walmart ATM's, and as well as Wawa like most cards. Walmart is not that bad of a company. You can't go by what you hear, actually work for them and its a lot better than it sounds. I like the job, see very little problems with it.
9-06-2009 @ 10:23AM
Ronnie said...
This is a sign of the times. Before we know it, like Revelations in the Bible says that people will not be able to buy or sell without the mark of the beast. Away with currency and hello 666. This is sad because people are blind, and go along with foolishness!!!
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9-05-2009 @ 8:28AM
SESZOO said...
JUST ANOTHER WAY TO KEEP CASH OUT OF THE HANDS OF THE PEOPLE, PRETTY SOON THERE WILL NOT BE ANY CASH AT ALL,JUST ELECTRONIC CARDS,WHAT HAPPENS WHEN THE GOVERNMENT DECIDES FOR WHATEVER REASON IN THE NAME OF SECURITY DECIDES TO SHUT DOWN THE COMPUTORS SO NONE OF US WILL HAVE ANY ACCESS TO MONEY TO DO ANY THING WITH?THEN THEY WILL HAVE TOTAL CONTROL!!!
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9-05-2009 @ 10:53AM
Dave said...
Big deal other companys have been doing this all along.
Kmart, Dollar tree stores and the like .Why is it only newsworthy if almighty Walmart does it.
The evil empire is trying to take over the world and you idiots fall for it.
When you have on other choice but Wal mart what will you do. they have their own bank their own factorys they run all the compeition out before long they will own you.....
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9-05-2009 @ 1:01PM
Cat said...
How can they say they are doing this for the betterment of our eco-system. They will still have to send out some kind of paper receipt for direct deposit so what does that save! And the debit cards are not biodegradable! That's even worse than the paper checks!
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10-15-2009 @ 9:24PM
Kaysa said...
As a Wal-mart employee, I know first hand the debit card isnt "fee-less".
Before with the paper check - you took it up to the front desk and they gave you your money. No problem. Its over. No fees, nothing.
With this debit card - You get charged -
When you use an ATM - the first time is free, the second time will cost you 2 dollars, following each and every time thereof.
And it will cost you 50 cents each time you use it at the register AFTER your first time. (Someone above said 40 cents, but its 50. Maybe its different store by store?)
Its not fee-less. There are also several other strings attached to it, if you read the fine print at the bottom of the pamphlet they handed out.
If you seriously think this is a good idea....then you have no idea what your talking about. Try asking the workers what they think before making your opinion.
(PS - The perk "Plus workers dont have to drive to work to pick up there checks" isnt a "perk", considering most people pick up there checks when they come to work.) There arguments are invalid and of course one sided.
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10-16-2009 @ 7:39PM
Al said...
The Federal Government has been paying its employees with direct deposit for years and never a problem. Social Security receipents have had direct deposit for years also and not many problems that I know of. It is safe, in your account when/before it is suppose to be and you don't have to physcally go to the bank and deposit or cash it. In 2009, everyone should have at least a checking account.
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