Does Reg E cover business debit cards?

No. Reg E applies to consumer accounts only.

But you do have Visa and MasterCard Zero Liability Provisions which may require the Provisional Credit to be issued by x amount of business days - Visa is 5, not sure about MC. Depending on your association, check their operating regs

By in large you get to write the rules, within vendor (V/MC) and/or state restrictions, because Reg E doesn't apply.

The Banker Tools has a sample business debit card agreement if you're looking to open such access.

The business debit card agreement referenced in Andy's post above states:

2. Liability and Promise to Pay. Company agrees to be unconditionally and without limitation liable
for all debits effectuated by use of the Cards, whether authorized or unauthorized, whether utilized by Employees or
some other person, and whether arising from Cards lost or stolen.

Wouldn't Zero Liability say otherwise? If an employee that was issued a debit card made unauthorized purchases couldn't the business owner claim zero liability?

Zero Liability does cover unauthorized transactions that arise from lost, stolen, compromised cards. However, any transactions performed by an employee who was issued a card are not considered unauthorized for the purposes of Zero Liability.

MasterCard Zero Liability states Unauthorized use means that you did not provide, directly, by implication or otherwise, the right to use your card and you received no benefit from the "unauthorized" purchase.


VISA Zero Liability states Financial institutions may exclude from the Zero Liability policy a transaction made by a person authorized to transact business on the account and/or a transaction made by a cardholder that exceeds the authority given by the account owner.

If an employee loses the card and there is fraud, Zero Liability will protect the business. The business is on the hook for an employee who goes on a shopping spree.

Note that this thread is from 2008. Zero Liability for business debit cards has changed over the years.

Thanks Brian, for the clarification.