Introduction to Payment Processing Policy
The Comptroller’s office offers PayCards for the net pay of state agency employees who wish to receive their payment on a debit card.
For details, please see Payment Cards for Payroll/Annuity Net Pay (PayCards) (FPP P.004).
The PayCard program for the state of Texas is currently available to employees of state agencies (with the exception of institutions of higher education).
Effective April 1, 2019, participation in the PayCard program requires the paying state agency to provide all three of the following documents to payees BEFORE enrollment:
The disclosure forms result from Regulation E (REG E) requirements. The authorization form now contains certification language for the payee and the paying agency to acknowledge receipt and distribution of these forms prior to enrollment.
Note: In accordance with Bank of America’s contract terms and REG E requirements, paying agencies (referred to below as “Client”) must adhere to the following:
- All information provided about the payee is correct.
- If the payee is to receive payroll or wage payments through a CashPay® account, the payee is legally employable in the United States of America.
- As of April 1, 2019, Client represents and warrants that it advised the payee that the payee does not have to accept the card account for the purpose of receiving wage, payroll or government benefit payments, and that Client has provided the payee with other ways to receive such payments. Client has also provided the payee with the following Bank-provided content for pre-acquisition documents required by Regulation E before the payee chooses to receive payments via the CashPay® card:
- A short-form disclosure that sets forth certain key fees and information about the CashPay® card,
- A statement that the CashPay® Visa Card is issued by Bank of America, N.A., and there is no fee to purchase the card and no fee to activate the card, and
- A long-form disclosure that sets forth comprehensive fee information and other key information about the card.
- Client provided the payee the explanatory CashPay® Service information that Bank provided to Client for that purpose, including the USA PATRIOT Act disclosure, and the payee authorized in advance of the initial payment the transfer of wages, payroll or government benefit payments to the CashPay® account.
- The payee has not cancelled the authorization to transfer the wages, payroll or government benefit payments to the CashPay® account.