This guidance comes two months after the CFPB received a letter from 16 Senate Democrats expressing concerns that employers might be taking advantage of their workers and pressuring them to use the cards. According to a report in The New York Times, businesses can sometimes receive commissions for getting their employees to use the payroll cards. 

“As the CFPB has now made clear, employers who provide payroll cards must allow their employees to opt out and must clearly disclose all fees in advance,” Sen. Richard Blumenthal (D-Conn.), who signed the original letter, said in a statement. 

• Disclosure of fees: Payroll card holders are entitled to receive disclosures of any fees that they may incur for electronic transfers of funds to or from the card. These disclosures must be clear, in writing, and in a form that consumers may keep.

• Access to account history: The card issuer must either provide periodic statements or generally make card holders’ account balances and 60-day account histories available — by phone for the balance, and online, as well as in writing if requested, for the account history. The account history must include information on any fees imposed for fund transfers.

• Limited liability for unauthorized use: Payroll card holders’ liability for unauthorized use of their cards is limited, provided the unauthorized use is reported within a certain period of time.

• Error resolution rights: If a card holder reports a payroll card account error, the financial institution must respond so long as the report is received within a certain period of time.