What to Do If You Don't Have a Checking Account &
JAG Professional Resources Requires Direct Deposit?
Many in companies in the United States no longer use checks for payroll. Employees are required to provide a checking
account number and bank routing number so the employer can use direct deposit services to pay them. Many people do
not have checking accounts and failure to open one could prevent them from accepting employment. JAG Professional
Resources would like to help you with this process and can explore alternative ways to receive a payroll direct deposit.
Why Does JAG Use Direct Deposit?
Direct deposits save money by eliminating postage and printing costs associated with paper checks. Direct deposits also
provide security to both the payer and payee because they eliminate the risk of funds being stolen in transit. Electronic
transfers post to the recipient's account the same day they are received, which means employees have immediate access
to funds.
What are the Benefits of Direct Deposit?
Most banks provide checking account holders with Visa debit cards which enable them to access funds 24 hours a day
and seven days a week. People without accounts must carry cash and if they lose money or suffer a robbery, they have
no recourse. People who lose debit cards are liable for no more than $50 of losses if they report the loss within two
business days. Also, many people without checking accounts pay check cashing fees to banks or check cashing centers
every time they are paid.
What Solutions do I Have?
Option 1: Checking Account or Second Chance Account
People with poor credit who cannot open regular checking accounts can open "second chance" checking accounts. Most
of these accounts charge monthly service fees and provide customers with ATM cash withdrawal cards rather than Visa
debit cards, but for many people monthly fees are more affordable than settling debts. Most banks only offer the second
chance accounts to people who have settled past-due accounts. Visit your local bank for more details.
Option 2: Payroll Debit Cards
Payroll debit cards are increasingly popular and many states use them to make unemployment payments to people
without checking accounts. Payroll debit cards allow users to access funds at ATMs and point of sale merchant terminals.
However many people believe that payroll debit cards are the same as Visa gift cards, but the latter do not enjoy the same
protections. Payroll debit cards are covered by the Federal Reserve’s Regulation E, which limits card holders' liability in
instances when the cards are lost or stolen. The Federal Deposit Insurance Corporation also covers funds deposited onto
payroll debit cards. FDIC insurance provides coverage of up to $250,000 in the event that the card issuer goes bankrupt.
Where do I get a Payroll Debit Card?
Many companies provide payroll debit cards. You can find many different options in local stores and online. One of
the most often used and easily accessible cards are available at Walmart. Simply go to your local Walmart store
customer care center and ask for a Walmart Money Card by Green Dot. This is a Reloadable Prepaid Card. Direct
deposit reload on this card are FREE. Once you have your card all you have to do is give JAG the account number
and the routing number. There are many uses and ways to deposit money on your card. Please check with your
local store for more details.
If you have any future questions please contact JAG Professional Resources and we would be more than welcome
to assist you in any way.