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Payment Cards for Payroll/Annuity Net Pay (PayCards)

Issued: Feb. 25, 2011
Updated: Sept. 17, 2019 – View Changes

FPP P.004

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Details

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Form

PayCard Enrollment Authorization form (74-224) PDF

Contacts

Lost or stolen cards and account statements

Call Bank of America customer service at (866) 213-4074

SPRS instructions

Contact your SPRS representative

CAPPS HR/Payroll instructions

Contact your agency’s CAPPS support staff

USPS instructions

Contact your USPS representative

PayCard Enrollment Authorization form or Prepaid Administration Tool (PAT)

Payment Services help desk at (512) 936-8138 or tins.mail@cpa.texas.gov

Program marketing

Payment Services help desk at (512) 936-8138 or tins.mail@cpa.texas.gov

Overview

Applicable to

State agencies

Summary

Payment cards for payroll or annuity net pay provide an optional alternative to warrants or direct deposit to a bank account for state agency employees and retirees of the state. The paycard program allows employees and annuitants to choose to receive their net pay on a debit card. Payees can contact their paying agency to elect this option. Paying agencies may not require a payee to use a paycard.

The contracted vendor (Bank of America) loads the paycards with the net pay on the pay date. Payees can then use the card at the point of sale or receive cash from an ATM. There is no fee for point of sale purchases, and other fees are nominal for the payee.

The paycard program provides a convenient financial management tool to the payee and savings to the state through not having to generate and distribute warrants.

The paycard is only provided for net pay, not for travel reimbursement, one-time retirement withdrawals or other payments.

Note: By completing the PayCard Enrollment Authorization form, the payee establishes a financial relationship with Bank of America. As a result, Bank of America staff must handle questions related to the account.

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Comptroller Requirements

Authorization form

Payees use the PayCard Enrollment Authorization (74-224) PDF to enroll in the paycard program. The paying agency must provide the payee the enrollment form as well as the federally required disclosure forms before processing the enrollment. These documents and the requirements are posted on TexPayment Resource – PayCards. State agencies must certify on the enrollment form that the required disclosure forms were provided to the payee before enrollment.

The form must be completed in its entirety, and will be rejected and sent back to the paying agency if any information is omitted. No alterations to the authorization language will be accepted.

This form authorizes the Texas Comptroller of Public Accounts to deposit net payroll/annuity payments from the state of Texas to the payee’s Bank of America paycard. The Comptroller’s office will reverse any payments made to the payee’s account in error at the request of the paying agency.

Prenote period

A prenotification (prenote) test is sent to Bank of America for all new paycard accounts, the same as other types of direct deposit. The prenote period is three banking days.

Allow for 10 days

The setup of direct deposit instructions for a paycard must be completed no later than 10 days before payments are processed to take effect for that payment period. This ensures sufficient time for the prenote period to complete and for the payee to receive the paycard. A warrant will be issued for a payroll/annuity payment processed before the paycard is activated.

Savings account

A savings account deduction cannot be paid to a paycard. The paycard amount will be the checking account deduction.

Travel reimbursement

Travel reimbursement payments cannot be paid to a paycard. Employees who choose to receive their net pay on a paycard will receive travel reimbursements by warrant unless the agency establishes a separate mail code and uses that mail code with direct deposit instructions only for travel reimbursements.

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Bank of America Requirements

Information to verify identity

In order to issue a paycard to a payee, Bank of America must capture certain identifying information in compliance with the Patriot Act, as is required of all banking establishments. The payee must provide the following on the PayCard Enrollment Authorization (74-224) PDF:

  • His or her name
  • Physical home address (cannot be a post office box)
  • Social Security number
  • Date of birth
  • Country of citizenship
  • Country of residency

Because this program is available only to state of Texas employees and state retirees, the occupation for employees will be Civil Service and for retirees will be Retiree.

Note: The information provided on the authorization form is critical. The new paycards are mailed to the address provided, so it is important the payee provide the correct residential mailing address.

What payees can expect

If the timing does not permit the card to be loaded on issue day, the payee will receive a warrant for that payment. After that, the payee can expect payments to be available on payment day just like direct deposit. Once the initial payment has been made, payees should have access to the funds on the paycard, except under unusual circumstances.

Fraud protection delay possible

Bank of America enforces standard fraud detection measures. The payee who selects a paycard for his or her net pay must be informed that there may be instances when the funds could be delayed. This delay could occur if the payee receives a single payment greater than $10,000. This threshold amount is a flag that the amount coming in to the account is greater than the upper limit expected to be received on the paycard.

If the threshold amount is exceeded, Bank of America must do research to ensure that no fraud has occurred, and there may be a short time when the funds are not available. If potential fraud is identified, the payee’s account may be frozen until the issue is resolved.

Fees

Bank of America offers the state of Texas a nominal fee structure for paycards. There is no fee for point of sale purchases, which may eliminate some costs to the payee for warrant cashing.

This fee structure remains in effect for 45 days after the payee terminates from state employment or notifies the paying agency that he or she wishes to stop using the paycard. If employees have an existing paycard when they become state retirees, they must re-enroll using the PayCard Enrollment Authorization form. Cards kept after employment ends, not as a state retiree, will incur fees based on standard Bank of America pricing, which will increase the fees for using the card account. Payees are encouraged to ask Bank of America customer service representatives about any potential fee changes.

Answering questions

Required disclosure forms about fees and any additional marketing materials should be given to each payee before enrollment. Once enrolled, the payee needs to contact Bank of America at (866) 213-4074 with questions about:

  • Lost or stolen paycards
  • Balance questions
  • Account fees

If employees or annuitants have questions about gross pay, deductions or net calculation, they can contact their paying agency for clarification.

Marketing the program

Bank of America has created marketing materials including warrant stuffers and flyers. The program is not limited to payees paid by warrant. It is available to all employees and state of Texas annuitants. Bank of America can also give presentations about the program on request. For more information, contact the Payment Services help desk at (512) 936-8138 or tins.mail@cpa.texas.gov.

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SPRS and CAPPS HR/Payroll Instructions

  1. Employees at Standardized Payroll/Personnel Reporting System (SPRS) and Centralized Accounting and Payroll/Personnel System (CAPPS) HR/Payroll agencies return the completed PayCard Enrollment Authorization (74-224) PDF to their payroll offices.
  2. Authorized staff at agency payroll offices at the Health and Human Services (HHS) agencies and Texas Department of Criminal Justice:
    1. Must be granted security access to the Bank of America Prepaid Administration Tool (PAT) by the agency security coordinator (Comptroller user ID required).
    2. Must review forms for legibility and completeness.
    3. Must sign the State Agency Use Only section of enrollment forms certifying the required disclosure documents were received by the payee.
    4. Enter the authorization form information directly in the Bank of America PAT.
    5. Use the routing and account numbers to complete the setup of the direct deposit instructions for the paycard in their internal systems.
  3. All other agencies:
    1. Must review forms for legibility and completeness.
    2. Must sign the State Agency Use Only section of enrollment forms certifying the required disclosure documents were received by the payee.
    3. Submit the form to Fiscal Management’s Payment Services section by encrypted email to tins.mail@cpa.texas.gov, fax to (512) 475-5424 or interagency mail.
    4. Fiscal Management staff enters the authorization form information in the Bank of America PAT.
    5. Receive a report from Fiscal Management with the routing and account numbers that agency staff use to complete the setup of the direct deposit instructions for the paycard.
  4. The employee’s net pay can be loaded on the paycard based on the EFT instructions provided to SPRS (including CAPPS HR/Payroll agencies).

Note: Remember, the setup of direct deposit instructions for a paycard must be completed no later than 10 days before payrolls are processed to take effect for that pay period. A warrant will be issued for a payroll payment processed before the direct deposit instructions are active.

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USPS Instructions

  1. Employees at Uniform Statewide Payroll/Personnel System (USPS) agencies return the completed PayCard Enrollment Authorization (74-224) PDF to their payroll offices.
  2. Agencies must review forms for legibility and completeness.
  3. Agencies must sign the State Agency Use Only section of enrollment forms certifying the required disclosure documents were received by the payee.
  4. Agency payroll offices submit the forms to Fiscal Management’s Payment Services section by encrypted email to tins.mail@cpa.texas.gov, fax to (512) 475-5424 or interagency mail.
  5. Fiscal Management staff enters the authorization form information in the Bank of America Prepaid Administration Tool (PAT).
  6. Fiscal Management sends a report to agencies with the routing and account numbers so agency staff can complete the setup of the direct deposit instructions for the paycard on the H0BUI (Direct Deposit) screen.
  7. The employee’s net pay can be loaded on the paycard based on the EFT instructions provided to USPS.

Note: Remember, the setup of direct deposit instructions for the paycard must be completed no later than 10 days before payrolls are processed to take effect for that pay period. A warrant will be issued for a payroll payment processed before the direct deposit instructions are active.

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Annuity PayCard Processing

  1. Annuitant payees of the Texas retirement agencies return the completed PayCard Enrollment Authorization (74-224) PDF to their paying agency.
  2. Paying agencies must review forms for legibility and completeness.
  3. Paying agencies must sign the State Agency Use Only section of the enrollment form certifying the required disclosure documents were received by the payee.
  4. Paying agencies submit the forms to Fiscal Management’s Payment Services section by encrypted email to tins.mail@cpa.texas.gov, fax to (512) 475-5424 or interagency mail.
  5. Fiscal Management staff enters the authorization form information in the Bank of America Prepaid Administration Tool (PAT).
  6. Fiscal Management sends a report to retirement agencies with the routing and account numbers so agency staff can complete the setup of the direct deposit instructions.
Changes to this Document
Date Updates
09/17/2019 Updated to reflect new federal disclosure requirements and retiree eligibility
06/27/2016 Updated instructions for SPRS and CAPPS HR/Payroll agencies