Wells Fargo ends free checking in more states – $7 fee to be nationwide.
Wells Fargo has ended free checking in six more states, and has announced that it’s part of a plan to end free checking nationwide. In a Reuters article today, the bank stated that the next states will be on the East coast, part of the branches gained in their Wachovia acquisition.Customers will have to jump through hoops to cut costs:
Bank of America recently denied an announced fee hike, but as more banks increase prices to make up for lost overdraft fees, it’s guaranteed to spread. At Directo, we keep costs low, and pass the savings on to our customers. We’ve seen more previously banked individuals open Directo paycard accounts, proving that we were right – Directo paycard accounts are not just for the unbanked. More and more, it’s the thrifty way to bank.
Last year, Bank of America backed away from plans to impose a monthly fee, but the fee is back under consideration. The mega bank is testing a fee in some states, and according to a Reuters report on Yahoo Finance today, customers must buy other bank products to avoid the fee. If the test is a success, you can be sure other banks will follow B of A’s lead.
The latest payroll fraud tale comes from New Hampshire, where a woman acquired a Dunkin Donuts paycheck and used it as a template to create her own. She’s headed to jail, as are the man who supplied the check, and another woman who helped cash the checks. Read the whole story here at the UnionLeader’s website.
Protect your company from schemers. Go electronic and quit sending paychecks out into the world. Direct deposit, with a paycard program to help all employees participate, is proven to reduce, and in most cases eliminate, paycheck fraud risk.
Paychecks are riskier than ever. To speed deposit and decrease lobby and drive-through traffic, banks have installed ATMs that accept deposits electronically. Just insert the check and an image of it pops up with a request to verify the amount shown. The money is deposited to the account, and reconciled later. Your stolen paycheck could be run through a stranger’s account, operated by a stolen debit card, and you (and the account owner) wouldn’t find out until days later.
Far more common is for a crook to note your account and bank routing number and order new checks, or to “wash” the stolen paycheck and enter new information on it. Higher dollar amounts, new payee name – both are common ways to loot your company’s bank account.
How to keep from giving strangers your company’s banking information? Direct deposit, of course. And with a solid paycard program to allow unbanked workers to participate, you can cut your fraud risk in a single payroll period. It’s easier than you think to avert a paycheck fraud disaster.
Msnbc.com financial blogger Allison Linn hits a nerve with today’s post about consumer’s love of the convenience of debit cards, but not the fees that banks want to attach to them. After the outcry over rising bank fees that large banks imposed to recover lost interchange income, banks eased off, but are roaring back with different fees, this time hidden as charges for perks such as expedited online bill pay. Be wary. And remember that for many, the answer is a payroll card account such as Directo’s: simple to use, with low, transparent fees.