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SB 581

An Act amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

2025-2026 Regular Session Introduced by Lisa Baker and 7 co-sponsors

SB 581 strengthens consumer protections for Pennsylvania workers receiving pay via electronic funds transfers and payroll cards, updating 50-year-old state law.

Laid on the table (Pursuant to Senate Rule 9)
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Bill Summary · SB 581

Legislative bill overview

SB 581 modernizes Pennsylvania's 1975 electronic funds transfer law by expanding protections for consumers using payroll cards and digital payment methods. The bill amends existing regulations to establish new consumer safeguards and clarify legal requirements for electronic payment systems in employment contexts.

Why is this important

Payroll cards have become an increasingly common alternative to traditional paychecks, particularly for low-wage workers who may lack bank accounts. Without clear state-level protections, workers using these cards can face unexpected fees, limited dispute resolution rights, and inadequate consumer safeguards compared to traditional banking.

Potential points of contention

  • Employer burden vs. worker protection: Expanded consumer protections may increase compliance costs for employers and financial institutions offering payroll card programs
  • Scope of "payroll cards": Defining which payment systems qualify and which protections apply could create implementation complexity and loopholes
  • Fee regulation questions: The bill may address or fail to address caps on permissible fees charged to workers, a contentious issue between worker advocates and financial service providers

Compiled from official sources — confirm details with the bill’s official record.

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