Due to our suffering economy more Americans have been making use of their state’s unemployment system. Interestingly, in many states, people have started receiving benefits in the form of debit cards instead of checks.
The Bureau of Labor Statistics said that unemployment was up to 5.5% in June 2008 as more than 155,000 Americans became jobless. In an effort to cut costs and provide benefits faster 21 states have joined up with banks such as J.P. Morgan Chase and Wachovia in order to provide debit cards for unemployment recipients. Now other states are starting to take notice and slowing starting a change over to the debit card system.
Experts say that it’s a faster system but state officials as well as unemployment recipients are having difficulties trying to learn the new system. The old system required the applicant to fill out weekly forms showing they are not being paid and are currently looking for work. Then those forms would be sent in and you would wait for a check in the mail. Now you receive a debit card and a PIN number. The card can be used just like any other debit card. You still send in your forms showing work and job search information and then your card is automatically recharged. No more waiting!
Overall the new system is a win-win for everyone. Recipients save money on not having to cash checks and they get their money faster. The state saves money on printing and mailing costs.
Like all new systems they are still working out the kinks. There have been some issues with debit card roll out and concerns from recipients who want to do all their banking through their current account but the cards are issues from a different bank. Also because the debit cards use a PIN number their have been some phishing e-mails asking for PIN numbers. So you have to wary of scams.
But just like any new program there are always problems and you can never make everyone happy. In the end I think people will grow to appreciate the new system.
When it comes to privacy some concerns have been raised. Some recipients received marketing calls from the banks that issued their cards, however those calls were found to be unrelated to their unemployment. People that are really concerned about their information can transfer the funds from their debit card to their regular bank electronically or over the phone.
As for the cards themselves they are not identifiable as unemployment cards. They look just like any other debit card issued from a bank.
The debit card program is becoming very popular and is being used for other things as well. Some states are using them for welfare payments. The U.S. Treasury has started a pilot program for Social Security recipients in 10 states which offers the debit card as an option other than a paper check.
So it seems that the new system is being well received and will eventually make things easier for everyone.
