How Unemployment Debit Cards Work

How Unemployment Debit Cards WorkHow Unemployment Debit Cards WorkWhen you receive unemployment compensation, your benefits may be paid via a debit card (also known as a direct payment card or electronic payment card). The card will be provided to you by your state unemployment office. When you file for unemployment, you will be advised of the different options available for receiving benefits. Most states no longer issue paper checks because it is far less expensive toprocess benefits electronically. In the states that have gone electronic, options for receiving unemployment benefits include a direct deposit transferred straight to your bank account or your benefits are added to a bank debit card. How Unemployment Debit Cards Work After you sign up for benefits your card will be mailed to you. Once received, you will need to activate it and set up a PIN in order for it to receive funds from the government. Youll receive yourfunds according to a schedule determined by your local unemployment office. Payments are typically made on a weekly or bi-monthly basis depending on your location. To find out how to sign up for (or change) your unemployment payment option, check with your state unemployment office. If your state unemployment office provides a debit card, it will work just like any other bank debit card. You will be able to withdraw cash at an ATM machine ofyour choice and use your card for purchases at stores. You can also pay bills withyourdebit card. For example, you may be provided with a Chase Visa card, a Bank of America Mastercard, or another bank-issued card. When you use your card, it wont be apparent to the department store or your dry cleaner that its an unemployment payment card. Your card will be similar to a personal debit card. In addition, you may be able to transfer funds from your unemployment debit card directly to your bank account via a direct deposit transfer if you want to pay your monthly bills that way. Check with yourlocal bank tosee if theyprovide this service. What to Do if You Dont Receive Your Payment If your payment is more than a few days late, call your unemployment office. They will be able to provide you with information as to whether or not your payment has been processed and what to do if your payment is delayed or theres been some kind of snafu. How to Avoid Unemployment Debit Card Scams As soon as the world went electronic, scammers came out of the woodwork. Thats because, unfortunately, its not all that hard to steal from people electronically. Unemployment debit card scams are thieves who target unemployment recipients in order to get their hands on your funds. The good news is, you can protect yourself. Unemployment offices do not ask for your personal information once your claim is set up. Therefore, most likely youre dealing with a scammer if you receive a phone call, email, or text message requesting the following information Social Security numberBank Card/Direct Payment Card n umberDirect Deposit account numberPIN number To protect your privacy, do not provide any of the above information to a third party.