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Single mom Natalie Gunshannon from Pennsylvania is suing McDonald’s for paying her wages through the JPMorgan Chase Payroll Card, which charges various fees for use, ultimately resulting in Gunshannon earning less than minimum wage.

ABC News reports that Gunshannon is “hoping to have her case certified as a class action on behalf of the other employees who were paid with the Payroll card.”

The Chase Payroll Card currently charges a $10 inactivity fee after 90 days, a $1.50 ATM fee, and also a $0.75 per online transaction.

According to the lawsuit, McDonald’s “does not provide a choice for hourly employees to receive their justly earned wages through a bank check, cash or direct deposit.” Gunshannon had allegedly asked to get her wages in the form of direct deposit, but was denied, which forced her to use the Chase Payroll Card.

In addition, “A growing number of employers use payroll cards to pay some of their employers, but it violates both state and federal law to pay by payroll card alone, according to Lauren Saunders, managing attorney with the National Consumer Law Center.”

A payroll card essentially functions like a debit card, but they are only offered by employers who are paying workers for their services. You cannot apply to get a payroll card, and the sole purpose of the card is for employees to deposit a worker’s wages. Employees can withdraw their money through ATMs or a cash-back purchase.

However, there are fees associated with the cards, which is why Gunshannon is suing McDonald’s in the first place, because the accumulation of usage fees would bring her $7.44 hourly wage down below the Pennsylvania minimum wage of $7.25.

According to an attorney for Consumers Union who was interviewed, “some employers are motivated to pay wages with these payroll cards to cut the cost of distributing paper checks.”

Do you think that Gunshannon is fair to sue McDonald’s? Have you ever been paid with a payroll card? Let us know in the comments below.

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Q: I recently tried to make an online purchase with my TD Bank debit card but it was rejected, twice. It is not a new card and there is a balance in the account. Why is my card getting declined when shopping on the Internet?- Patrick W.

A: There are several possible reasons that your debit card was denied.

One reason is that you’ve already hit the daily spending limit on your debit card. Banks place daily spending limits on debit cards to minimize the financial harm that can be done to your finances if your debit card is lost or stolen.

On signature transactions (the type that often takes place with online purchases), TD Bank places a $5,000 daily spending limit on a regular Visa debit card or $10,000 on a Visa Platinum debit card. TD Bank customers are allowed to increase their daily spending limits by submitting a request over the phone or by secure messaging through online banking.

However, unless you’ve spent that much already during the day, this probably isn’t the reason that your debit card was declined.

On the other hand, it is quite common to have any card purchase rejected when the card issuer suspects an unauthorized purchase. It is a simple security measure that kicks in automatically when a purchase is unusually large or takes place at a location that is far from your place of residence.

A quick call to the card issuer will lift the security block temporarily.

In the most extreme scenario, your checking account was frozen without notice. There are various reasons for why the bank would do that. If your account had noticeable fraud or highly suspicious activity, the bank is likely to take such a drastic action.

Again, you’d have to contact your bank if this is the case.

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Flickr | http://www.flickr.com/photos/wainwell/7623382744/

It’s wedding season, which means that everyone is getting married at the same time, and you’ll have to choose which weddings you want to attend. For this week’s Money Chat, we looped in MyBankTracker’s Marketing Director Anthony, who has been in the midst of attending weddings for the last few summers.

Claire: I did go into debt once because of traveling for a wedding, and I wanted to know if you guys would be willing to do the same. There’s also the bachelor and bachelorette parties, and some people also have destinations for those too!

Anthony: Yeah I went to Montreal weeks ago for a bachelor party.

Amy: I’m not at the age where my friends are all getting married, but I’m inclined to say that for close friends, I’d be willing to go into debt to attend their weddings if necessary.

Anthony: They all come rapid-fire… you just don’t have a July anymore. I’m in the middle of that right now. The way I look at it, it’s a great day where I get to celebrate with all my friends. I also get to see people I never see, so it’s like a mini-reunion. My friends are all over the place, but mostly in the Northeast, so I don’t have to travel too far. To me it’s definitely worth it to spend the money and figure out a way to make it happen.

Amy: Have you had to travel super far for a wedding?

Anthony: Everything has pretty much been in the Northeast. I have to travel to Chicago for a wedding, was in Montreal for a bachelor party. I’ve been to Montreal for like three bachelor parties.

I feel like destination weddings are a ploy for a lot of people. I used to have a buddy who had a destination wedding at Hawaii, and he knew no one was going to be able to make it to the wedding other than his closest friends and his family. But everyone who he invited had to send a gift, so…

Claire: That’s another thing, too. You have to travel to the wedding, you have to book a hotel, you have to pay for food and booze, and then on top of that, you have to give a gift! It’s just so expensive. When you’re actually in the midst of celebrating, you don’t really think about it and you just spend.

Amy: So have you ever said “no” to any of your friends’ weddings?

Anthony: Nope, never. But back then, my girlfriend at the time had to go to weddings every couple of months, and I feel like women have it worse when it comes to attending weddings.

Amy: Expenses for a guy attending a wedding, I’m sure, are less than what girls have to spend.

Bishoy: I would do it. If the friend is not that close, I probably wouldn’t even be invited in the first place, but if it was for a close friend, I would definitely do it. You have to be there.

Anthony: Do you think of it as paying it forward? You’ll eventually get married so you have to be there now so that they show up? (laughs)

Bishoy: (laughs) You just have to be there. If you sat there before wedding and thought, “Should I go or should I not?” Think two years down the line if you didn’t show up to the wedding. You would regret it.

Amy: What’s the most you guys have spent on attending a wedding?

Anthony: Weddings can start at like, $800, easy. There’s the flight, the hotel, the food, the things you’ll be doing at the location outside of attending the ceremony, the wedding gift. Luckily for me, I save on flights through my Chase Sapphire Preferred credit card — I rack up points and purchase tickets through Chase’s airline portal!

Claire: Nice! And people usually get married at really nice places too, which means if it’s a nice hotel, guests are inclined to stay there and fork out expensive costs for a room. There are ways to save, but it still gets very expensive and people don’t think about it. It’s based on friendship and love and all of that, so you don’t see dollar signs.

Anthony: They can be a hassle, but all-in-all… weddings are awesome. Just putting it out there, weddings are awesome!

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Flickr | http://bit.ly/16AvqQa

Thieves have evolved their schemes when it comes to fraud. There are many types of scams out there and identity swindlers are always looking for their next victim. We’ve compiled a list of scams you should be aware of. These scams have stolen millions from consumers and your first line of defense against them is knowing what they are and how you can be affected.

Billing schemes

This popular scam has stolen millions from consumers and businesses. Extortionists will send a sophisticated invoice that is indistinguishable from any ordinary invoice and request a certain amount of money. The outreach is wide enough that many consumers overlook the bill and pay the amount that is claimed to be due.

According to the Consumer Sentinel Network, 9.7% of all fraud related complaints reported in 2012 contained some sort of billing scheme.

Users will either ask you through these letters to open a new account such as a utility to extract your information or send unauthorized charges on an existing account. Be sure to thoroughly check the billing source before shelling out any money.

Credit repair scams

Scammers have begun emailing and paper-mailing offers to repair credit for a fee. Many of these services are free and can be done on your own. There are others that are completely illegal and are attempting to scam you into paying the fee for no help at all.

It is illegal to erase any negative information on your credit history. You can work to solve and alleviate any of your credit problems through obtaining your credit report and looking at detailed inquiries. Suggestions that you can create a new credit history are illegal and false.

Check fraud

This type of scam can affect a business or individual in many different ways. Scam artists have been well-documented in resorting to forgery, counterfeiting or alterations, and paper hanging — which is a form of check fraud. Wikipedia explains, “Specific kinds of cheque fraud include cheque kiting, where funds are deposited before the end of the float period to cover the fraud, and paper hanging, where the float offers the opportunity to write fraudulent checks but the account is never replenished.”

Forgery typically takes place when an employee issues a check without authorization. The employee will then use it for personal use or sell the check to another scammer for their use.

Counterfeiting is the process of duplicating or copying authentic checks. Using fairly simple editing and publishing equipment on computers, scammers create precise and detailed checks for to use for themselves. Alterations primarily involve using chemicals or other editing equipment to change numbers or various data on checks. The modifications these criminals make can be very costly.

Paperhanging is an old tactic where criminals purposely write checks on closed accounts and constantly reorder them. The victim is then questioned by the bank as to why checks have been written on a closed account, unaware of any fraud.

Skimming

This sophisticated scam has become a very popular gateway to identity theft and stealing debit and credit card data from consumers. A skimmer is an electronic device that is placed over an ATM card reader. Every swipe of a card is read, recorded and stored onto the device. Scammers will also place a virtually unnoticeable camera to read pin numbers. They then print the information onto a card and begin to either withdraw cash or charge various expenses.

To avoid this, be sure to double check the swiping machine at places like random ATM machines and gas stations. If it looks rickety or shoddy, chances are someone has tampered with it.

Phishing

Scammers have taken kindly to this method as the most effective weapon of choice. Fraudsters will send an email posing as a website you may use. They will inform you that there is some outstanding issue with your account and ask you to relieve the situation. You will then be prompted for all your user information for the site. The scammer will then attempt to use your information on the site you provided it for as well as any other sites you may use.

The “Nigerian 419” scam also prompts you for your information as well as thousands of dollars after informing you that you have inherited a large amount of money. The amount promised is usually in the millions to entice their victims. The scammer will ask the victim to transfer the funds to a U.S. account and in exchange will receive a percentage of the funds. The victim in these cases will open the account and make it available to the scammers for withdrawal. Scammers take the money and are not heard from again.

Always be vigilant about these types of scams and when it doubt, never give your personal information, such as credit card numbers, social security numbers or bank account numbers to anyone. Also, never ever write anyone a check or give them money.

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Today’s guest post comes from Tiffany “The Budgetnista” Aliche, who illustrates 17 different ways to help you save money on your next getaway!

Summer is almost here, and that means travel season has arrived. Ticket prices for flights are generally more expensive in the summer, but it can cost less than you think; you just need to think outside of the box.

These 17 tips will help you get started on your adventure while saving you money for your next trip…

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Tiffany “The Budgetnista” is the author of the bestselling book, The One Week Budget and the owner of a fun, financial education company, The Budgetnista.

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Flickr | http://www.flickr.com/photos/eguidetravel/6198882526/

This week we’re going to test an oft-quoted theory about purchasing online airfare tickets, in which a traveler might encounter different prices depending on how a travel/airline site stores a user’s cookies.

A person might get different deals depending on their browser history, which seems wildly discriminatory and unfair.

Rick Seaney writes in USA Today,

The question is, are these travel sites smart (or brazen) enough to target your personal behavior via cookies to jack up rates and pocket the difference? Or is this price-jumping behavior simply an artifact of airline pricing technology and the shortcuts used by quoting websites to handle the insatiable demand for ticket quotes?

The team at MyBankTracker is going to test it out to see if there’s any truth to this. We’re going to look up flight prices every day this week using three different travel sites: Expedia, Kayak, and Orbitz. The plan is to conduct searches on various browsers (Firefox, Safari, Internet Explorer, Chrome) and then on Thursday, we’re going to delete our browser cookies and do another set of searches with a “clean slate.”

If we notice a price discrepancy after clearing our cookies, it might reveal that airline companies do provide users with different results depending on their internet browsing histories. It would be a good reminder, then, to always clear cookies between searches when planning future trips!

Leave a comment if you’ve ever noticed a difference when looking to book travel tickets when you booked on separate computers, or during different times of the day.

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torbakhopper / Flickr | http://www.flickr.com/photos/gazeronly/8604672342/

Say goodbye, for now, to savings accounts that pay 1.00% APY because you won’t be able to find that nationwide savings rate until the Federal Reserve starts to raise interest rates. In the past month, the last savings account to offer at least 1.00% APY had slashed its savings rates.

CIT Bank dropped the savings rate on its online savings account from 1.00% APY to 0.85% APY (applied to balances of $25,000 and up). On balances of under $25,000, the savings rate fell from 0.90% APY to 0.80% APY.

Meanwhile, most other banks did not make any significant changes to their savings rates. As a result, the national savings rate average remains unchanged from May at 0.29% APY.

The top nationwide savings rate of 0.95% APY is currently held by Bank X, followed closed by the 0.90% APY savings rate from Barclays.

All eyes will be looking at the next Federal Reserve board meeting. The central bank said it was prepared to scale back its quantitative easing measures, which would signal that the Fed believes that the U.S. economy is doing better. The sooner the economy improves, the sooner the Fed will increase interest rates.

Unfortunately, the U.S. unemployment rate rose to 7.6 percent in May, up from 7.5 percent in April. It’s one step backward from the key 6.5 percent unemployment rate, which would indicate the time that the Fed will start to raise rates.

The table below shows the changes in savings rates at benchmark financial institutions from May 15, 2013 to June 15, 2013. By monitoring the savings rates at some of the largest banks, we get an idea of where rates at other banks and financial institutions are headed.

Use the MyBankTracker’s savings rate table below to compare the top savings rates currently available:

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Flickr | http://bit.ly/11JZnvS

That four-door sedan you called your own for several years now has to go back to the dealership. The lease is up and your contract spells out penalties if the car is damaged or if you go over your allotted miles.

Of course there’s bound to be normal wear and tear, but you want to make sure that your borrowed car is in shape for the next person who may want to buy or lease it. Here are some ways to ensure that you aren’t charged for your leased car once you turn those keys over.

Read the fine print. This cannot be stressed enough as it will save you stress in the long run. 
Read every part of the contract again. See what is covered and what isn’t. If you’re not sure or don’t understand the contract, call up your dealership and questions!

Parting with the car

Remember, the car was never yours to begin with. The dealer will want the car back in the condition that you received it. Have the car washed and detailed thoroughly before returning.

Repairs

Make repairs to damaged bumpers, windshields or tires. Rotate your tires regularly during the time you have the car and make sure both the taillights and headlights are in working condition.

Other equipment such as radios, heat/AC and navigation systems should be working properly. You will be charged a fee if the inspector at the dealership sees any flaws to the equipment. Some leasing companies will offer insurance that will cover the costs of unforeseen damages and wear and tear, but read the fine print.

Keep all receipts and document repairs. Go to Auto Zone and buy some cream that removes light scratches.

Inspection

Have the car thoroughly inspected before you turn the car in.  If the car has any minor defects or repairs that are needed, take it to a trusted mechanic and get them fixed. It could mean the difference between paying hundreds of dollars as opposed to thousands of dollars the dealership may charge. Try to have the car inspected at least a month before the scheduled turn-in date.

The keys

Usually when a car is leased, the dealership will give two pairs of keys, in case one pair is lost or stolen. Some dealerships can charge in the hundreds for a lost set of keys. If your key does end up missing, you can go to a shop or hardware store to have a duplicate made for a fraction of what the dealership would charge.

Exceeding mileage

This is an important aspect of leasing a vehicle. The leasing company will offer varying mileage allowances. For example, if a car company offers a range of 10,000 miles to 20,000 per year and you go over the amount, you will most likely be charged in the range of 10-15 cents per mile you went over, depending on your lease.  The leasing companies are really stern about this and they will not cut you any slack.  You could end up paying thousands of dollars due to excess mileage. Again, read the fine print.

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Oisin Prendiville / Flickr | http://www.flickr.com/photos/prendio2/3393817102/

Robo-signing may not be the last of the unscrupulous practices that banks are accused of employing to foreclose on homeowners. Former Bank of America employees allege that the bank actually encouraged employees to deny mortgage modifications.

• Over the weekend, Rep. Carolyn Maloney held an event to push her proposed bill on overdraft charges, which is currently “stalled” in the House of Representative’s financial services committee. The bill, called the Overdraft Protection Act, would require consumer consent to overdrafts, ban unfair transaction posting order, and limit the number of fees assessed.
• Bank of America continues on its plan to reduce the scope of its branch network. The bank is reportedly looking to sell eight branches in Northeast Pennsylvania. However, Bank of America hasn’t officially announced that the branches are for sale. The bank has a small 3% deposit market share in the area.
• In other Bank of America news, six former employees said in a lawsuit that the bank intentionally denied potential home loan modifications. Using bonus incentives to entice employees, the bank allegedly pushed homeowners into foreclosure, which helped to boost the bank’s profits. Bank employees were also said to lie to homeowners about the status of their mortgage payments and documents.
• On Tuesday, the Federal Reserve is scheduled to hold its next board meeting. Because central bankers talked of scaling back the current bond-buying program, which helps to suppress interest rates, everyone is watching the Fed closely. Further mentions of such a move is going to shake up all aspects of the financial industry.
• While credit card fraud is more likely to occur to active card users, some consumers have become targets of such fraud even though their credit cards are stuffed in their sock drawers or kept in the back of their freezers. In one recent case, dormant credit card accounts were hijacked by a credit card employee. It’s another reminder to check your credit reports often.

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True to its name, MyBankTracker brought you a ton of bank stories this week, along with practical everyday money tips and recommendations. We also shared a few unexpected stories, from interviewing  a professional poker player, to overcoming awkward money moments. Jump into the weekly wrap below!

• It’s now possible to completely digitize your finances. Do it in 5 steps here.
• Simon gave you the 5 top stories you need to know this week.
• We gave you the 411 on utility fraud from a professional fraud operations manager.
• See the 6 top awkward money moments and how to overcome them here.
• There are 8 things every beachgoer needs, and it costs less than $100.
• Go abroad and use your smartphone cheaply with these 5 methods.
• Free checking accounts are disappearing at big banks. See our picks for online alternatives.
• Try taking a staycation with these 7 frugal and fun suggestions.
• How can you tell if a cashier’s check is fake? Simon gives you the know-how here.
• Here are 4 reasons why your credit card company thinks your card is stolen.
• PNC Bank is restructuring their banking model and killing free checking.
• Student loans can get confusing. Understand and choose the right one for you here.
• Writer Kaia has been freelancing for 10 years. Read her thoughts about it.
• College grads can’t get comfortable yet! Here’s what they need to know about managing finances.
• We interviewed a former professional poker player. Read it here.
• No one should have to deal with outliving their retirement savings. We give 5 ways to avoid that.
• Father’s Day is one holiday with tons of budget-friendly options. Check them out here.
• The team chatted about money and whether they would pay for an airline subscription package.
• Gas has increased by 108% in the past decade. See the other 9 commodities that have jumped up.

Weekly Wrap: Summer Finances