Public radio’s longest-running daily global news program.
©2025 The World from PRX
PRX is a 501(c)(3) organization recognized by the IRS: #263347402.
Government gives prepaid debit cards for benefits, consumers get slapped with fees
More than 40 state governments now have contracts with banks to give unemployment benefits on pre-paid debit cards. Banks are cashing in on the game with fees.
Photo of ATM users (Image by Flickr user Toolshed4 (cc:by-nd))
Governments have distributed some $53 billion in unemployment benefits and child support payments via prepaid debit cards. Those cards are exempt from new consumer protection rules, and banks are cashing in. Some users are charged for any ATM usage, others for checking their balances and some for not using the cards enough. Suzanne Martindale of the Consumer Union explains how the fees work.
———————————————————————————
“Here and Now” is an essential midday news magazine for those who want the latest news and expanded conversation on today’s hot-button topics: public affairs, foreign policy, science and technology, the arts and more. More “Here and Now”.