The New York attorney general's office is probing complaints about fees on payroll cards, and some U.S. senators are calling for increased regulation. But the industry is becoming more popular with both employers and banks, in part because loading the cards saves employers money compared to issuing paper checks. Critics, however, claim that monthly fees for wage-earners are too high and that the employees are forced to accept payroll cards even though they may not have a bank account. A Federal Reserve study pegs monthly fee income per card at about $1.75, meaning the banking industry could generate more than $120 million in payroll card fees this year.
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