NASE News

NASE Supports the Use of Payroll Cards in Letter to CFPB


The NASE in conjunction with several organizations communicated its support of payroll cards in a letter to the Consumer Financial Protection Bureau. The Bureau recently released a proposal regarding prepaid accounts in an effort to protect employees from bas practices. The letter proposes that the Bureau make three changes to their proposal:

First, we would ask the Bureau to rethink the proposed “warning” that 
would lead off the short form disclosure. We believe that the formulation “you do not have to accept this payroll card” and the advice to “ask your employer about other ways to get your wages,” are unduly negative and will discourage employees from using a payroll card. We would ask the Bureau to adopt a neutral formulation that does not needlessly discourage use of these safe and beneficial products.

Second, and relatedly, we would urge the Bureau to allow issuers to 
provide an accurate picture of the card’s fee profile in the short form disclosure, rather than insisting that they only show the highest possible fee in relevant categories (which employees likely would avoid).

Finally, we would ask that the Bureau clarify what constitutes 
“acquisition” in this context so that employers may continue to provide informational packets (provided by the financial institution) to employees that include both the relevant disclosures and a card that an employee may subsequently decide to use to receive his or her wages.


In 2013, $30.6 billion was loaded onto payroll card and the figure only continues to grow. 

The full letter can be read here.