Abstract: A method of dynamically resolving disputes between an employee using a payroll deduction plan to pay for purchases and an external system processing the payroll deduction plan, the method comprising the steps of (a) determining if the dispute relates to a product or service purchased from a merchant or to an error in the processed employee payroll deduction; (b) if the dispute relates to an error in the processed employee payroll deduction, determining if the error is related to a number of deduction periods or the employee's pay cycle frequency; (c) if the error relates to an error in the number of deduction periods, the external system corrects the number of deduction periods and determines if a next payroll deduction period is in progress of being processed; (d) if the external system determines that a deduction period is in progress, the external system allows the next deduction to occur and determines if the deduction amount is too high or too low; (e) if the deduction amount is too low, the employee pay