During these tough economic times many states are looking for ways to cut expenses. One popular way to reduce or eliminate the costs of writing paper checks to unemployment recipients is by using automatic deposits or a prepaid debit card system to send people their money.
What are the pros of the debit card system? It is more affordable to those who do not have a checking or savings account as opposed to using a check cashing store that may charge as much as 2% of the check and it is also convenient.
What are the cons of the debit card system? Those receiving unemployment benefits are the least able to afford fees such as; overdraft fees up to $20, ATM fees up to $2.50, customer service fees, balance inquiry fees and even withdrawal fees.
When money is tight it is very important to be familiar with the fees and services that accompany and debit card system. One thing they all have in common is that there is at least one way to withdrawal your money for free.
If your state has moved to a prepaid debit card system it is important to educate yourself on the fees that you may be charged for various services such as balance inquiries, customer service calls, teller service, and ATM charges to start.
Each state has negotiated varying arrangements with the banks. You can find out by visiting your state’s unemployment sites.
If you have information to add about your state we would like to hear from you.
Here we have posted links to some of the states that are offering the debit card system;