Payroll Card Accounts
Question
Payroll card accounts established directly or indirectly by an employer for the purpose of electronically transferring an employee's wages, salary, or other compensation on a recurring basis, are covered by:
Answers
Explanations
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A. B. C. D.A
The correct answer is A. Regulation E.
Regulation E, also known as the Electronic Fund Transfer Act (EFTA), establishes the rights, liabilities, and responsibilities of parties involved in electronic fund transfers (EFTs). The regulation applies to various types of electronic funds transfers, including those initiated through payroll card accounts.
Payroll card accounts are a type of stored-value card that employers can use to electronically transfer an employee's wages, salary, or other compensation on a recurring basis. The funds are typically deposited into an account that is accessed by the employee through a payroll card, which functions like a debit card. The employee can then use the card to withdraw cash, make purchases, or transfer funds to another account.
Regulation E applies to all electronic fund transfers, including those made through payroll card accounts. The regulation provides important protections to consumers who use electronic fund transfers, such as the right to receive disclosures about the terms and conditions of the transfer, the right to dispute errors or unauthorized transfers, and the right to limit certain types of transfers.
In summary, payroll card accounts established directly or indirectly by an employer for the purpose of electronically transferring an employee's wages, salary, or other compensation on a recurring basis, are covered by Regulation E.
