South Carolina Pay Card Compliance
Here’s a look at the current payroll requirements in South Carolina; a state in which paperless pay is permitted:
- Legal Requirements:
The South Carolina wage payment statute does not expressly address pay cards, but South Carolina permits the deposit of wages to an employee’s credit at a federally insured financial institution doing business in the state. The South Carolina Department of Labor Licensing and Regulation takes the position that pay cards are permitted if specified conditions are met such as the employee must be entitled to at least one withdrawal for each deposit, free of any service charge and the employee must be provided a statement of earnings and withholdings. See S.C. Code § 41-10-40(B). Fees that deny employees the ability to access their full net wages at least once each pay period are likely to be prohibited. See S.C. Code § 41-10-40 (requiring at least one withdrawal for each deposit free of any service charge). The South Carolina wage payment statute does not expressly address convenience checks however the code does permit payment to be made by negotiable “bank check bearing even date with the payday”. S.C. Code § 41-10-40.
- rapid! PayCard® Program offers:
- All rapid! PayCards display the MasterCard or Visa Brand Marks, are FDIC-insured1 and may be used for both signature and PIN transactions.
- The rapid! PayCard provides numerous ways for employees to access their full net pay each pay period, including:
- Teller Assisted Cash Withdrawal at banks displaying the MasterCard or Visa Brand Marks
- Electronic transfer to a bank account
- US Post Office Money Order
- ChekToday convenience checks
Additional methods of cash access include:
- ATM withdrawals:
- Allpoint® – The rapid! PayCard is currently a member of the Allpoint ATM network, which provides our cardholders with unlimited, surcharge-free ATM access at more than 55,000 locations worldwide.
- MoneyPass® – The MoneyPass network offers tens of thousands of surcharge-free ATMs coast to coast. This card may be used at any MoneyPass surcharge-free ATM.
- Cash back with POS purchases using a PIN
When one of the transactions above is the first transaction after employer wages are loaded to the Card, the fee associated with that first transaction is waived.
- A Fee Schedule is included in the enrollment packet provided to employees and is always available online.
- rapid! PayCard is governed by the Issuing Bank’s2 comprehensive privacy policies in accordance with federal law. A copy of the Issuing Bank’s2 privacy policies is provided in every card package, is available on its website, and is provided upon request by calling cardholder services.
- In addition, the Issuing Bank2 distributes an annual privacy notice and error resolution to all cardholders.
- The rapid! PayCard system is compliant with the Payment Card Industry Data Security Standards.
- rapid! PayCard offers ChekToday which may be cashed by cardholders at participating Wal-Mart stores free of charge, check cashing facilities or used to make other direct payments.
At rapid! PayCard, we not only stringently work to ensure compliance, we offer the flexibility both employers and employees need to facilitate the payroll process itself.
1Funds are FDIC insured through the Issuer. Please see the back of your card for its issuing bank. The Bancorp Bank and MetaBank, Members FDIC. For additional information regarding FDIC insurance and what it means for you as a cardholder visit fdic.gov/consumers FDIC insured. MetaBank® or The Bancorp Bank® are FDIC-insured members. For additional information regarding FDIC insurance and what it means for you as a cardholder visit fdic.gov/consumers
2MetaBank or The Bancorp Bank; please see the back of your card for the Issuing Bank.