California veteos SB931, thank goodness for businesses and their cardholders.
by ReadyFUND$ Payroll Card
Last February, SB931 was proposed to California legislature to help clarify regulations on payroll cards. The issue with SB931 was that it introduced too many regulations on payroll cards. It would have worked against the very people it was created to protect. The regulations it strove to impose are too many to list, which means many businesses would not even bother trying to comply. Rather than comply, businesses would go back to the path of least resistance: paper checks. The purpose of payroll card is to offer a solution for employees who do not have bank accounts or direct deposit. Imposing fees and regulations causes these employees to move backwards and out of mainstream society. Governor Jerry Brown believed this too. He vetoed the bill stating that it “simply went too far”.
Reading online about SB931, I saw a lot of misconceptions about payroll cards that spurred fear in consumers. I am sure this is the same fear and misconceptions that evoked the very proposal of SB931. A good payroll card provider will always look out for the interest of the cardholders. These providers want businesses to issue their cards, but also want cardholders to enjoy and appreciate the benefits of using their product. When the California legislature reconvenes in January, they will revisit this bill. Hopefully with a better understanding of how payroll cards benefit both businesses and their employees.