Wal-Mart moves to electronic pay program for employees

Bentonville, Ark. Wal-Mart is eliminating paper payroll checks for its U.S. associates. The chain is rolling out an electronic pay program whereby it will transfer employees' earnings to the bank via direct deposit. Those employees who decline direct deposit will receive their earnings on a debit card.

"Electronic payroll is the right choice for our associates, our company and the environment," said Tom Schoewe, executive VP and CFO, Wal-Mart Stores. "It provides our associates with fast, convenient and safe access to their pay. The program's ability to reduce paper usage is right in line with Walmart's commitment to eliminate waste wherever we can."

Wal-Mart is implementing the program in conjunction with MasterCard Worldwide and First Data. MasterCard will be the exclusive brand for the debit card. First Data will provide the processing and reload network for the program as part of First Data's Money Network Payroll Distribution Service. Workers will be able to use the cards wherever debit cards are accepted, including at ATMs, and will be able to withdraw cash without fees at Walmart and Sam's club registers.

"Walmart is raising the bar for employers everywhere by providing associates who don't have bank accounts with immediate access to funds on payday, without fee or discount, and access to cash at thousands of locations across the country," said Ed Labry, president, Retail and Alliance Services, First Data.