B2B Payments

RushCard Paycard Fiasco Hits Employees

Some workers across the U.S. were left without their paychecks last week thanks to a glitch in the RushCard system, reports said late last week.

Reports throughout last week said some employees had been unable to access their paycheck for several days because of the snafu, meaning businesses that pay their employees via prepaid card and use the RushCard to do so were experiencing problems.

[bctt tweet="Some workers were left without their paychecks last week thanks following RushCard glitch."]

CNNMoney reported last Thursday (Oct. 15) that Russell Simmons, who founded RushCard, issued an apology for the situation.

“I want to personally reassure you that your funds are safe and that we are addressing every issue as quickly as possible,” he said in a video statement published on his Facebook page. “I deeply apologize for the hardship this is causing and give you my solemn commitment that we will fix these problems.”

The statement, issued on Wednesday, included a warning that it would still take a few days for the RushCard system to get back online.

Still, Simmons said that some direct deposits were beginning to show up in users’ accounts. However, RushCard noted it would not be able to provide its usual service of giving employees their paycheck funds two days before they receive their actual paycheck.

Rick Savard, RushCard CEO, said in a statement that the glitch stemmed from the RushCard shift to a different payments processor, though reports did not elaborate and Savard did not say which processor the company is moving to. The firm also did not specify how many users across the U.S. were affected by the problem.

The glitch is the latest in a recent slew of controversies over payroll cards, with legal cases pending in multiple states as some employees argue that the fees associated with many prepaid payroll cards are unfair.

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