Payroll debit cards can be issued to individuals without bank accounts, allowing them to access cash from an ATM and pay bills online. They can act as both a debit card and a credit card, providing flexibility in their use. However, they may not be protected if lost or stolen, so the user should take appropriate precautions. They do not necessarily have to go through the Federal Reserve's Automated Clearing House system.

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Payroll Debit Cards

Question 261

Multiple Choice

Payroll debit cards:

A) are protected if lost or stolen.
B) have limited use because they can only act as a credit card, and the recipient does not have access to cash.
C) must go through the Federal Reserve's Automated Clearing House system.
D) can be issued to persons without bank accounts who can use them to pay bills online, or access cash from an ATM machine.

Correct Answer: