Payroll cards established by employers to deliver recurring wages, salary, or other employee compensation have the same protections that apply to bank debit cards and as those under the federal Electronic Fund Transfer Act and federal Regulation E since July 1,2007. They include the right to get funds “reaccredited” that is, returned to the account, within 10 business days after a theft or error, unless the bank can show within that time that there was no theft or error.

The federal protections also restrict the amount of loss when the card is stolen. The voluntary VISA and MasterCard “zero liability” policies can’t replace a guarantee of federal Regulation E protection. The voluntary policies don’t cover all of the circumstances where federal law provides protection.  For example, MasterCard’s policy does not apply if there are two or more instances of theft or unauthorized use of a card in one year. VISA’s policy does not apply when the card is used at an ATM.  VISA’s policy also does not apply if the card is used “outside the VISA system”.

 Retailers can choose whether to process a card payment on the VISA network, or on another network. If your employee has his or her payroll card stolen and used at an ATM or used outside the VISA network, the VISA zero liability policy will not apply. If your employee has his or her payroll card stolen and the card is fraudulently used three times in one year, the MasterCard zero liability policy will not cover all three thefts. Make sure your payroll card contract gives your employees who hold payroll cards full federal Regulation E protections. To get more information about business payroll online services cards, contact NetPEO.

NetPEO is an HR brokerage firm, matching payroll and HR service brokers to meet the needs of clients across the country. Through NetPEO’s competitive pricing, they can offer a genuine human resources solution without causing your company any financial instability.

NetPEO will work with you throughout the process to make sure you get the best benefits out of your decision to use NetPEO.