QUOTE
State-issued prepaid debit card better for jobless
Issued like any other debit card
December 19, 2006
BY DANIELLE BRAFF Post-Tribune
The Department of Workforce Development is gradually replacing unemployment checks with prepaid debit cards, saving the state nearly $2 million per year.
The initiative began quietly last week, when 5,000 Visa debit cards were distributed to unemployed Hoosiers, including some in Northwest Indiana, said Joe DiLaura, Workforce spokesman. The cards look like normal credit cards and can be used in any store accepting Visa credit cards. Recipients could also take the cards to the bank to get cash.
Each week, DiLaura said, money will be credited to the cards as long as the person remains unemployed.
The new funding program reflects monetary advances illustrated by an American Bankers Association study, which said debit and credit cards have surpassed cash as the most popular way to purchase goods. One third of purchases are made with debit cards, compared with one in five purchases four years ago, the study said.
"It provides faster access and more convenience for recipients," DiLaura said. "They don't have to go to the bank, so they can spend the money on groceries directly. Once the program is up and running, they'll have access to their funds two days quicker."
In addition to the perks for the unemployed, there are also perks for Workforce Development, who will be saving time and money when they don't have to do weekly mailings for welfare checks.
DiLaura said the debit cards would work the same way as unemployment checks and recipients would be able to spend the money on whatever they wanted.
"As we've said before, this is a win-win situation for both recipients and taxpayers," Commissioner of Workforce Development Andrew Penca said in a statement. "Recipients will receive their benefits in a more timely fashion, and easily have access to their funds at banks, ATM machines, or at thousands of merchants throughout the state."
The 5,000 debit cards mailed last week represented 20 percent of the total number of Indiana residents collecting unemployment. The remainder of the recipients should expect to receive the debit cards at the beginning of the year, as Workforce Development continues to roll out the new arrangements.
The cards are expected to eventually be used by all the unemployed, who accounted for 248,077 last year, receiving more than three million payments totaling $654 million. The average payment per week was $274.
Twenty-five unemployment recipients in Indiana participated in a pilot program using the debit cards, and the results were positive.
"It's easy, it's fast, it's efficient," said Jack Money of Indianapolis.
Contact Danielle Braff at 648-3079 or dbraff@post-trib.com
Issued like any other debit card
December 19, 2006
BY DANIELLE BRAFF Post-Tribune
The Department of Workforce Development is gradually replacing unemployment checks with prepaid debit cards, saving the state nearly $2 million per year.
The initiative began quietly last week, when 5,000 Visa debit cards were distributed to unemployed Hoosiers, including some in Northwest Indiana, said Joe DiLaura, Workforce spokesman. The cards look like normal credit cards and can be used in any store accepting Visa credit cards. Recipients could also take the cards to the bank to get cash.
Each week, DiLaura said, money will be credited to the cards as long as the person remains unemployed.
The new funding program reflects monetary advances illustrated by an American Bankers Association study, which said debit and credit cards have surpassed cash as the most popular way to purchase goods. One third of purchases are made with debit cards, compared with one in five purchases four years ago, the study said.
"It provides faster access and more convenience for recipients," DiLaura said. "They don't have to go to the bank, so they can spend the money on groceries directly. Once the program is up and running, they'll have access to their funds two days quicker."
In addition to the perks for the unemployed, there are also perks for Workforce Development, who will be saving time and money when they don't have to do weekly mailings for welfare checks.
DiLaura said the debit cards would work the same way as unemployment checks and recipients would be able to spend the money on whatever they wanted.
"As we've said before, this is a win-win situation for both recipients and taxpayers," Commissioner of Workforce Development Andrew Penca said in a statement. "Recipients will receive their benefits in a more timely fashion, and easily have access to their funds at banks, ATM machines, or at thousands of merchants throughout the state."
The 5,000 debit cards mailed last week represented 20 percent of the total number of Indiana residents collecting unemployment. The remainder of the recipients should expect to receive the debit cards at the beginning of the year, as Workforce Development continues to roll out the new arrangements.
The cards are expected to eventually be used by all the unemployed, who accounted for 248,077 last year, receiving more than three million payments totaling $654 million. The average payment per week was $274.
Twenty-five unemployment recipients in Indiana participated in a pilot program using the debit cards, and the results were positive.
"It's easy, it's fast, it's efficient," said Jack Money of Indianapolis.
Contact Danielle Braff at 648-3079 or dbraff@post-trib.com
