Debit Cards to Replace Unemployment Checks for 1.2 Million Californians

By  |  July 13, 2011
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Source: www.edd.ca.gov

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    Will be one of the largest prepaid card programs in the nation

    SACRAMENTO – For Californians receiving unemployment benefits, the days of waiting for a check to arrive in the mail are coming to an end.

    New state Employment Development Department (EDD) Debit Cards are replacing unemployment checks for the 1.2 million unemployed Californians currently receiving unemployment benefits. It is one of the largest prepaid card programs in the nation, covering both the Unemployment Insurance (UI) program as well as the State Disability Insurance (SDI) program, which converted to the Visa-branded debit cards earlier this year.

    “Debit cards are the currency of our time,” said Pam Harris, EDD’s Chief Deputy Director. “From gas to groceries, electronic transactions are the norm. Our new debit cards that include a direct deposit transfer option are a faster, more convenient and a more secure way for our customers to receive their benefits and engage the economy.”

    In addition, benefits of the EDD Debit Cards include:

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    – No check cashing fees for customers without a personal bank account.
    – Transfer options for customers who do have their own bank accounts.
    – No fees with careful use of the card.
    – Stability in the event of a disaster, avoiding mail disruptions that can occur with checks.

    Starting July 8, EDD will begin distributing 10,000 cards a day to unemployment claimants, a phasing-in transition from check to card that will take a couple of months to complete. Last year at the height of the recession, EDD issued approximately 41.2 million unemployment checks, a record number. (continued)


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