[nwallin]

By and large, the US doesn't use physical checks for paying employees. (we use the word "paycheck" colloquially) It's required by (possibly state?) law that companies allow direct deposit if you so choose. But it's an extra step the employee has to take, and many don't. It's technical debt for the employer to just give the employee a physical check and say "it's your problem now" than to pester them to provide their bank account information.

My first paycheck from my first summer job in high school was a check, and my severance from my last company was by check. Other than that, it's all been electronic. My previous three jobs don't allow regular paychecks by physical check, you have to have direct deposit. Physical paychecks are definitely the exception, not the norm.

There's also a lot of resistance to electronic banking in... certain circles. I'm not sure what they think "normal" banking when you speak to an actual teller is.

[mrguyorama]

A lot of unbanked people are not crazy or freedom nuts or anything, but just dirt freaking poor. It costs a lot of money to run a bank account with only a few hundred dollars in it. Add to that the fact that many banks purposely reorder transactions to force you to take as many overdraft fees as possible, banking for those living paycheck to paycheck is not cheap

[pitaj]

> A lot of unbanked people are not crazy or freedom nuts or anything, but just dirt freaking poor. It costs a lot of money to run a bank account with only a few hundred dollars in it.

Where? Everywhere I've banked offered checking accounts for completely free with no minimum balance, and I know many credit unions operate this way. If you're paying money to your bank, stop it.

> Add to that the fact that many banks purposely reorder transactions to force you to take as many overdraft fees as possible, banking for those living paycheck to paycheck is not cheap

This is really scummy but many banks allow you to, for debit cards, deny the transaction instead of overdrafting. That won't help with bounced checks or electronic transfers but it can make a big difference.

[silencio]

I own a restaurant in the SF bay area, and nearly all of my employees prefer cash or paper checks even if I offer direct deposit. (Not paying under the table - I still withhold and issue W-2s...)

Most major banks in the US require something if not a minimum balance to waive the monthly fee. Something like $x threshold for certain direct deposits, or you're a student/young adult, or you use your debit card x times a month.

Smaller banks and credit unions can have problems too: locations or lack of participating ATMs or the same problems as the big banks. There are absolutely scenarios where it can be easier (time and money-wise) to just go to the check cashing store.

Some unbanked people are undocumented and afraid to open accounts that might be closed/seized. Some have piss poor credit. Some of those folx won't be able to open new accounts because their chexsystems report has some negative item on it. A single issue like your car breaking down once can snowball into a much bigger situation.

> deny the transaction instead of overdrafting

Honestly, for paycheck to paycheck folx, this can still hurt. There won't be $200 in overdraft fees, but imagine, your PG&E bill is now past due because they couldn't charge your card. Now they want $20 for reconnection on top of the past due bill and 2x more in the form of a deposit due to bad credit. Welp, maybe the $200 in overdraft fees would have been easier to deal with.

Living paycheck to paycheck sucks for so many reasons, and so many of those reasons out of the individual's control.

[DINKDINK]

>There's also a lot of resistance to electronic banking in... certain circles

In the USA as of 2017, 8.4 million households (6.5% of households) don't have any bank account. [1]

[1] https://www.fdic.gov/householdsurvey/

[perl4ever]

Undocumented immigrants are about 5% of the workforce, so that could account for most of them.