WalMart Changes Method for Paying Employees -- Debit Card E-Pay or Direct Deposit Only
posted September 21, 2009 - 8:52pm
WalMart Stores Inc. has recently begun a push towards sustainability and is attempting to present itself as an innovator in environmentally sustainable projects. It is requiring suppliers to provide some basic measurements[1] on the on the sustainability of the products they create. The
company has made its truck fleet 25% more efficient since 2005, by changing routes, loading trucks better, and by using more efficient technology and fuels.[2] The next step in its sustainability roadmap is the reduction of paper waste associated with employee payroll. The company has adopted a digital only method of electronic payment for employee payroll. For those that have bank accounts the company will support direct deposit. For the unbanked a paper check will not be provided any longer. Rather the company will provide each employee with a new reloadable Mastercard debit card provided by First Data.[3] Most of the fees associated with these types of services are waived for current associates. The fees for adding money are waived, the fees for one ATM transaction are waived, and many others are free or waived. The company will charge 50 cents for a monthly paper statement. There are free check writing privileges associated with the account. And the card cannot overdraft which prevents predatory fees from being imposed on associates. This is an interesting concept! It is essentially a free checking account being assigned to all associates. I do worry however that the fees can be changed at any time, and that the company will impose fees on associates when they leave the company in order to maintain the cards they have become accustomed to using. This is however a positive step for sustainability and produces another cost saving for Walmart than can be passed on to customers. It also represents a great deal less paper being produced and wasted for physical checks.
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