Treasury to Offer Tax Refunds Via Prepaid Debit Cards
Taking another step toward the elimination of checks, the Treasury Department today announced that it is making tax refunds available via debit cards for individuals who don't have bank or credit union accounts.
The department plans to send letters to some low-income Americans next week suggesting they consider activating a MyAccountCard Visa Prepaid Debit Card.
"This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund," Deputy Secretary of the Treasury Neal Wolin said in a statement.
The Treasury Department is also encouraging people who use prepaid debit cards as a means for direct deposits of their wages to use the cards for tax refunds.
The department is already taking several steps to reduce the use of checks by the government.
People receiving government benefits by paper check have until March 1, 2013 to switch to direct deposits. Anyone applying for benefits on or after May 1 will automatically receive them electronically.
For more information on the program, go to: www.myaccountcard.gov