Consumer Protections

The federal Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E, establish the rights, liabilities, and responsibilities of participants in electronic funds transfer systems. Regulation E was amended effective July 2007 to expressly apply to paycard accounts. Under Regulation E, paycard accounts must carry a number of consumer protections, including:

  • Initial disclosures of the terms and conditions of the paycard account
  • Limits on a consumer's liability for unauthorized transfers
  • Change-in-terms notices
  • Error resolution notices
  • Access to account information through periodic statements or an alternative to periodic statements
  • Error resolution procedures

Contact the APA's Government Affairs Task Force (GATF) Payroll Card Subcommittee for more information about current and pending paycard legislation.