{"id":2632,"date":"2019-12-17T15:13:28","date_gmt":"2019-12-17T15:13:28","guid":{"rendered":"https:\/\/www.dailypay.com\/2019\/12\/17\/employees-beware-the-dangers-of-allowing-debiting\/"},"modified":"2023-10-06T14:07:22","modified_gmt":"2023-10-06T18:07:22","slug":"employees-beware-the-dangers-of-allowing-debiting","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/","title":{"rendered":"Employees Beware: The Dangers of Allowing Debiting"},"content":{"rendered":"\n<p>Many who want access to their pay before payday are told by providers that they need to allow access to the bank account where their payroll direct deposits are made.<\/p>\n\n\n\n<p>It may seem innocuous, and it is a legal and somewhat normal way of doing business nowadays, but there are pitfalls, and such a requirement should not be necessary to access your pay before payday.<\/p>\n\n\n\n<p>We are sharing our financial information all the time. Often we don\u2019t understand just how much access into our personal finances we are allowing entities to have. On-demand pay providers that require the debiting of bank accounts to take back the money provided before payday can create problems for their clients on two main levels.<\/p>\n\n\n\n<p>First, \u201cpeople don\u2019t realize they may be enabling some third parties to view ALL their financial data when they agree to authorize them, say, as a requirement to get an advance in pay,\u201d according to DailyPay Vice President of Payments, Gary Pearcy. (Note: <a href=\"http:\/\/dailypay.com\" target=\"_blank\" rel=\"noopener\">DailyPay<\/a> does not require such authorization for employees to begin receiving pay in advance of payday.)<\/p>\n\n\n\n<p>Speaking during the<a href=\"https:\/\/thesource-dailypay.com\/2019\/12\/12\/the-debiting-problem-part-2-episode-3\/\" target=\"_blank\" rel=\"noopener\"> Dec. 11 The Source by DailyPay podcast,<\/a> Pearcy said not only can these unregulated entities \u201csee everything that person has in that online banking world, but they have the ability to move money, which is really dangerous.\u201d<\/p>\n\n\n\n<p>Unregulated? Banks themselves are not a problem here because they are \u201cheavily regulated,\u201d and part of their job is to \u201cprotect their customers\u2019 information,\u201d Pearcy said.<\/p>\n\n\n\n<p>The problem is many people are allowing broad account access to nonregulated entities. \u201cThis is common,\u201d he said, and while most of these entities are prudent in their access there is no formal oversight into their behavior. \u201cThis is frightening,\u201d he said.<\/p>\n\n\n\n<p>But that\u2019s not all. There is another way that those with access to user bank accounts can \u201charm their customer,\u201d Pearcy said.<\/p>\n\n\n\n<p>Complaints have been reported regarding the premature debiting of bank accounts to recover on-demand pay amounts before payday occurs. This can put an account holder into a negative balance which then \u201ccertainly results in overdraft fees,\u201d Pearcy said. These businesses \u201cmay not have their customers financial well-being at heart.\u201d<\/p>\n\n\n\n<p>It is \u201cnot our practice at DailyPay to debit accounts,\u201d Pearcy said. The employee clients of DailyPay simply redirect their direct deposit so that on payday, DailyPay can receive it, remove any amounts paid prior to payday plus an ATM-like fee, and instantly send the remainder to the employee\u2019s bank account of choice.<\/p>\n\n\n\n<p>DailyPay\u2019s on-demand pay process does not demand employees authorize bank account access, which should not be necessary in order for employees to get access to earned pay before payday.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h3 class=\"heading color_green \">Interested in trying DailyPay?<\/h3><\/div>\n\n\n\n<span class=\"wp-block-dailypay-btn\" data-version=\"e71b\"><a class=\"btn btn-primary \" href=\"https:\/\/www.dailypay.com\/demo\/\" target=\"_blank\" rel=\"noopener\">BOOK A DEMO<\/a><\/span>\n","protected":false},"excerpt":{"rendered":"<p>Many who want access to their pay before payday are told by providers that they need to allow access to the bank account where their payroll direct deposits are made. It may seem innocuous, and it is a legal and somewhat normal way of doing business nowadays, but there are pitfalls, and such a requirement<a class=\"read-more\" href=\"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/\">Read More<\/a><\/p>\n","protected":false},"author":32,"featured_media":11796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[147],"tags":[186],"class_list":["post-2632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-financial-wellness"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Employees Beware: The Dangers of Allowing Debiting - DailyPay<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employees Beware: The Dangers of Allowing Debiting\" \/>\n<meta property=\"og:description\" content=\"Many who want access to their pay before payday are told by providers that they need to allow access to the bank account where their payroll direct deposits are made. It may seem innocuous, and it is a legal and somewhat normal way of doing business nowadays, but there are pitfalls, and such a requirementRead More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/\" \/>\n<meta property=\"og:site_name\" content=\"DailyPay\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dailypay\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/trydailypay\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-12-17T15:13:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-06T18:07:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.dailypay.com\/wp-content\/uploads\/beware-danger.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"DailyPay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dailypay\" \/>\n<meta name=\"twitter:site\" content=\"@dailypay\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"DailyPay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Employees Beware: The Dangers of Allowing Debiting - DailyPay","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/","og_locale":"en_US","og_type":"article","og_title":"Employees Beware: The Dangers of Allowing Debiting","og_description":"Many who want access to their pay before payday are told by providers that they need to allow access to the bank account where their payroll direct deposits are made. It may seem innocuous, and it is a legal and somewhat normal way of doing business nowadays, but there are pitfalls, and such a requirementRead More","og_url":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/","og_site_name":"DailyPay","article_publisher":"https:\/\/www.facebook.com\/dailypay","article_author":"https:\/\/www.facebook.com\/trydailypay\/","article_published_time":"2019-12-17T15:13:28+00:00","article_modified_time":"2023-10-06T18:07:22+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/beware-danger.jpg","type":"image\/jpeg"}],"author":"DailyPay","twitter_card":"summary_large_image","twitter_creator":"@dailypay","twitter_site":"@dailypay","twitter_misc":{"Written by":"DailyPay","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#article","isPartOf":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/"},"author":{"name":"DailyPay","@id":"https:\/\/www.dailypay.com\/#\/schema\/person\/0dc5e72435b747402bdc50b62513acd9"},"headline":"Employees Beware: The Dangers of Allowing Debiting","datePublished":"2019-12-17T15:13:28+00:00","dateModified":"2023-10-06T18:07:22+00:00","mainEntityOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/"},"wordCount":458,"commentCount":0,"publisher":{"@id":"https:\/\/www.dailypay.com\/#organization"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/beware-danger.jpg","keywords":["Financial Wellness"],"articleSection":["Blog"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/","url":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/","name":"Employees Beware: The Dangers of Allowing Debiting - DailyPay","isPartOf":{"@id":"https:\/\/www.dailypay.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#primaryimage"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/beware-danger.jpg","datePublished":"2019-12-17T15:13:28+00:00","dateModified":"2023-10-06T18:07:22+00:00","breadcrumb":{"@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailypay.com\/resource-center\/blog\/employees-beware-the-dangers-of-allowing-debiting\/#primaryimage","url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/beware-danger.jpg","contentUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/beware-danger.jpg","width":1200,"height":628,"caption":"A sign with \"DANGER\" written in red and white at the top and a black skull and crossbones graphic below, indicating a hazardous area. 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