PORTLAND, Ore. — Jobless Oregonians can now obtain their money with a first-in-the-nation debit card for unemployment benefits launched this month by the state and U.S. Bank.
According to a report in the Oregonian, the state pays $16 million a week to 80,000 unemployed citizens. Eleven percent have their benefits deposited directly into bank accounts; the rest get their benefits mailed in the form of paper checks.
The debit card, rolled out last week after a successful pilot program last year, provides a third payment option.
Gaye Crandall, program manager of U.S. Bank's prepaid cards, said 500 jobless Oregonians now get their payments with the card. She expects the number to increase to 3,000 to 4,000, depending on how successful the state is in promoting the card to benefits recipients.
The state electronically loads benefit payments onto the prepaid Visa cards each week, allowing recipients to purchase items or withdraw cash at stores and ATMs.
If the card is used at stores for products or cash, users pay no extra fees; there is a $1.50 charge for ATM use. At the end of the month, users can refer to an online or paper statement to track payments and expenditures.
Because of Visa's zero-liability policy, cardholders are not held liable for unauthorized purchases if the card is lost or stolen.
The state could save a bundle on the costs of mailing and handling paper checks, depending on how many people opt for the card, said Tom Fuller, spokesman for the Oregon Employment Department.
A paper check costs 50 cents to generate and 44.6 cents to handle and mail. The U.S. Bank ReliaCard costs just seven cents to load, according to the Oregonian report.
Oregon has used the Oregon Trail debit card since 1997 to disburse $42 million in food stamps and welfare payments each month, but the move into unemployment benefits is a first. A few other states use debit cards for child support payments.
(See related stories Colorado child support recipients can access payments at ATMs, Some Minnesota child support recipients opt for prepaid card and U.S. Bank waives ATM access fee for Calif. EBT recipients)
