Published: February 2011
Groups release joint principles on prepaid payroll cards
Two national consumer groups work with industry to develop joint principles on payroll cards, a type of prepaid card used for distributing wages when workers don't have a bank account to accept direct deposit.
Consumers Union and the National Consumer Law Center worked with the Electronic Payroll Coalition and its member organizations, including the American Payroll Association, to develop a set of joint principles on payroll cards. There were important areas of shared agreement, reflected in the joint principles, as well as other areas where the two consumer groups recommend additional consumer protections beyond the agreed protections.
Since Regulation E has already been modified by the Federal Reserve Board to apply directly to payroll cards, the issue with respect to unauthorized use which applies to other types of prepaid cards did not need to be addressed in these principles. Documents reflecting the joint principles and the supplemental consumer principles can be found at the links below on the Defend Your Dollars website, a project of Consumers Union:
For more information on other types of prepaid cards:
- See Consumers Union's September 2010 Prepaid Card Report.
- NCLC’s Prepaid Debit Card page
For More Information
Consumers Union Defend Your Dollars | National Consumer Law Center
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