This advisory is in response to inquiries that the OCC has received from bankers and examiners regarding supervisory expectations for payroll card systems. Increasing numbers of national banks are offering payroll cards and other pre-paid payment services. The OCC has found that such activities are part of the business of banking.1 General background information on this new product, which can be particularly useful for serving persons without bank accounts, can be found in an analysis prepared by the OCC Community Affairs Department.

Purpose Background......