Wis. Stat. § 203.04 — WI Code / Chapter 203 / Section 203.04
Provider requirements; limitations.
Status: in_force

(1) A provider required to be licensed under s. 203.03 (1) shall do all of the following:

(a) Develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers in an expedient manner.

(b) Offer to the consumer at least one reasonable option to obtain proceeds at no cost to the consumer and clearly explain how to elect that no-cost option.

(c) Before entering into an agreement with a consumer for the provision of earned wage access services, do all of the following:

1. Inform the consumer of his or her rights under the agreement.

2. Fully and clearly disclose all fees associated with the earned wage access services.

(d) Inform the consumer of the fact of any material changes to the terms and conditions of the earned wage access services before implementing those changes for that consumer.

(e) Allow the consumer to cancel use of the provider’s earned wage access services at any time, without incurring a cancellation fee or penalty imposed by the provider. If the consumer has initiated an advance of proceeds, the provider may require the effective date of the cancellation to be after the consumer has satisfied any repayment obligation the consumer has to the provider, either through payroll deduction, pre-authorized electronic funds transfer from a consumer’s account or depository institution, or other means previously agreed to by the consumer and the provider. Nothing in this paragraph requires a provider to allow a consumer-initiated advance to be canceled, revoked, suspended, or reversed after the consumer initiates the advance.

(f) Comply with all local, state, and federal privacy and information security laws.

(g) If a provider solicits, charges, or receives a tip, gratuity, or other donation from a consumer, the provider shall do all of the following:

1. Clearly and conspicuously disclose to the consumer immediately prior to each transaction that a tip, gratuity, or other donation amount may be zero and is voluntary.

2. Clearly and conspicuously disclose in its service contract with the consumer and elsewhere that tips, gratuities, or donations are voluntary and that the offering of earned wage access services, including the amount of proceeds a consumer is eligible to request and the frequency with which proceeds are provided to a consumer, is not contingent on whether the consumer pays any tip, gratuity, or other donation or on the size of the tip, gratuity, or other donation.

(h) Provide proceeds to a consumer by any means mutually agreed upon by the consumer and the licensee.

(i) If the provider will seek repayment of outstanding proceeds or payment of fees or other amounts owed, including voluntary tips, gratuities, or other donations, in connection with the activities covered by this chapter, from a consumer’s account at a depository institution, including by means of electronic funds transfer, the provider shall do all of the following:

1. Comply with applicable provisions of the federal electronic fund transfer act, 15 USC 1693 to 1693r , and regulations adopted under the act.

2. Reimburse the consumer for the full amount of any overdraft or non-sufficient funds fees imposed on a consumer by the consumer’s depository institution that were caused by the provider attempting to seek payment of any outstanding proceeds, fees, or other payments, in connection with the activities covered by this chapter, including voluntary tips, gratuities, or other donations, on a date before, or in an incorrect amount from, the date or amount disclosed to the consumer. However, the provider is not subject to the requirements in this subdivision with respect to payments of outstanding amounts or fees incurred by a consumer through fraudulent or other unlawful means.

(2) A provider required to be licensed under s. 203.03 (1) may not do any of the following:

(a) Share with an employer a portion of any fees, voluntary tips, gratuities, or other donations that were received from or charged to a consumer for earned wage access services.

(b) Require a consumer’s credit report or a credit score provided or issued by a consumer reporting agency to determine a consumer’s eligibility for earned wage access services.

(c) Accept payment of outstanding proceeds, fees, voluntary tips, gratuities, or other donations from a consumer by means of a credit card or charge card.

(d) Charge a late fee, deferral fee, interest, or any other penalty or charge for failure to pay outstanding proceeds, fees, voluntary tips, gratuities, or other donations.

(e) Report to a consumer reporting agency or debt collector any information about the consumer regarding the inability of the provider to be repaid outstanding proceeds, fees, voluntary tips, gratuities, or other donations.

(f) Compel or attempt to compel payment by a consumer of outstanding proceeds, fees, voluntary tips, gratuities, or other donations to the provider through any of the following means:

1. A suit against the consumer in a court of competent jurisdiction.

2. Use of a 3rd party to pursue collection from the consumer on the provider’s behalf.

3. Sale of outstanding amounts to a 3rd-party collector or debt buyer for collection from the consumer.

(g) If the provider solicits, charges, or receives tips, gratuities, or other donations from a consumer, mislead or deceive consumers about the voluntary nature of the tips, gratuities, or donations or make representations that tips, gratuities, or other donations will benefit any specific individuals.

(h) Advertise, print, display, publish, distribute, or broadcast or cause to be advertised, printed, displayed, published, distributed, or broadcast, in any manner, any statement or representation with regard to the earned wage access services offered by the provider, which is false, misleading, or deceptive, or which omits to state material information that is necessary to make the statements therein not false, misleading, or deceptive.

(i) Charge a fee, as described in s. 203.01 (9) (a) 1. , that exceeds the following:

1. For any advance of proceeds equal to or less than $75, $5, as adjusted under sub. (5) .

2. For any advance of proceeds greater than $75, $7.50, as adjusted under sub. (5) .

(3) The limitations set forth in sub. (2) (f) do not preclude the use by a provider of any of the methods specified in sub. (2) (f) to compel payment of outstanding amounts or fees incurred by a consumer through fraudulent or other unlawful means, nor do they preclude a provider from pursuing an employer for breach of its contractual obligations to the provider.

(4) A provider may use the mailing address provided by a consumer to determine the consumer’s state of residence for purposes of this chapter.

(5) Beginning on January 1, 2030, and at 5-year intervals thereafter, the division shall adjust the maximum fees specified in sub. (2) (i) to reflect changes since April 5, 2026, in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor. Each adjustment under this subsection shall be published on the department of financial institutions website.

History: 2023 a. 131 ; 2025 a. 199 .