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.

SB 581 updates Pennsylvania's 1975 electronic payment law to clarify rules for payroll cards and direct deposit. It requires employers to give employees 45 days' notice before eliminating cash/check payment options, with clear disclosure of all choices (including direct deposit) and deadlines to select a payment method at least 7 days before payday. If employees don’t choose, employers may use a payroll card they designate but must provide free access to wages (including two in-network ATM withdrawals weekly) and disclose all fees upfront. The law also prohibits payroll cards charging overdraft fees and mandates employers to honor requests to switch to direct deposit within 14 days. It directly affects Pennsylvania employees and employers using electronic wage payments.