State Unemployment Compensation Debit Cards

Once again, debit cards are proving to become more and more popular. As their ease of use become more renowned, more and more companies, and government bodies are accepting debit card programs with open arms.

An awesome concept, the State Unemployment Debit Card, has been springing up all around the country for the past 2 years. The debit card’s ‘ease of use’ is only one benefit individuals are seeing with the card. The most recent state to take advantage of the Unemployment Debit Card, is Pennsylvania.

Pennsylvania began sending out debit cards in place of unemployment benefit checks a few weeks ago, a move that is expected to save the state $2 million annually by reducing mailing and check-processing costs.

The MasterCard-backed debit cards are being distributed to new unemployment benefit recipients, who didn’t choose direct deposit. Those that were receiving unemployment benefits by check would continue doing so until the option will become eliminated. Beginning this March, debit cards will also be used for workers’ compensation benefits paid through the State Workers Insurance Fund, but those recipients will continue to have checks as an option because of statutory requirements. Direct deposit will remain an option for all benefit recipients.

Recipients will be able to access their benefits through ATM machines nationwide. They will be allowed to make two free withdrawals per month from any Wells Fargo ATM and will be able to use their debit cards at no cost at any merchant that accepts credit cards.

There are currently about 20 states that are using the Unemployment Debit Card, with most of the remaining states working on a similar program.

Slowly but surely, the widespread use of debit cards is here to stay, with tons of new possibilities on the horizon.