May 2, 2007

NEWS: TX Unemployed Get Debit

Texas will be the latest in U.S. states to roll out a program to put government-issued debit cards in the hands of those on its unemployment dole, according to recent news. The Texas Workforce Commission is piloting a program in San Antonio that shares many characteristics of start-up plans utilized by other states in kicking off their unemployment debit card agenda. Texas, however, is a bit unique in that it will give its citizens Visa debit cards on which to direct-deposit their checks – a bonus on which several other states have yet to capitalize. The idea of using debit cards to distribute unemployment (or welfare) funds has really taken off in the last few years, because of its myriad benefits. First of all, the cards give the underbanked a way to safely access the same benefits enjoyed by those with checks or credit cards: bill payment, withdrawal options, and the security of not carrying cash at all times. Secondly, the state saves considerable money by doing away with the costs of printing and distributing paper checks. Replacing lost checks is a notoriously costly and time-intensive process that inconveniences both the state and the consumer, and debit card disbursement would hopefully eliminate that hassle.

The TWC will partner with JPMorgan Chase to manufacture and distribute the cards, which are expected to be mailed at the end of this week. Under the program, some ten thousand cards will be distributed in San Antonio. Plans for statewide expansion call for cards to be mailed in June. As the new cards will bear a Visa logo, consumers can use them anywhere that accepts Visa cards.


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