Our bank does not issue debit cards to minors. A co-worker is telling me that this is a MasterCard rule, but I can't find that in writing anywhere. Also...in an emergency situation we will make an exception and issue a card to a minor, but in that case we are stating that the minor is not covered under Reg E. This can't be true....can it?

Some states allow a minor to contract for a checking account. I know of no states that allow a minor to contract for a debit card. They could disavow any debit card transaction at any time. They wouldn't need protection under Reg. E or MC.

On the flip side of your question -- when dealing with a consumer account, regardless of the age of the consumer, you cannot deny Regulation E coverage nor can the consumer waive it.