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In my state (California) the answer is kind-of. My understanding is that Costco no longer offers a paper check for payroll, and that they do require some sort of direct deposit. However, Costco does offer a 'payroll card' that your wages can be deposited onto. You have the choice of using this card like a debit card, or going to any bank that can process a VISA withdrawl and getting all your wages as cash. So instead of cashing a check, you cash a VISA debit card. Not really any difference, except the payroll card gives anyone who might not be able to get a traditional bank account the benefits of a VISA debit card, free of charge (as long as you pay attention to the terms as far as ATMs and such go).
So, the answer is that instead of a compulsory direct deposit onto a paper check, Costco has a compulsory direct deposit onto a plastic card. Not really any difference.
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