South Carolinians who rely on unemployment benefits soon won't have to wait for their checks to arrive in the mail. The state Department of Employment and Workforce is going paperless, phasing out benefits checks and replacing them with debit cards.
New recipients will start receiving Visa debit cards instead of checks on Monday, with all checks being replaced by October 1.
"It's a part of an effort that a lot of states have gone to now to make it easier for the individual to get their money as quick as possible and to be able to use it in a way that they don't have to worry about a check being stolen or worry about check-cashing fees and things like that that normally come up," says Clark Newsom, spokesman for the department.
There's also a huge benefit to taxpayers. Not having to process, print and mail checks will save the state more than $4 million a year. The department printed and mailed 100,010 checks last week.
The state Department of Social Services moved to EBT cards (Electronic Benefits Transfer) in December 1995 to replace food stamps. It says the move to the cards saved the state close to $25 million over a nine-year period.
The change to debit cards will also eliminate a major source of problems at the former Employment Security Commission. Its outdated computer software, and in one case human error, caused the department to send out duplicate checks on two separate occasions last year.
Newsom says, "There's no doubt about it, it will take away a lot of those factors that have been problems in the past and what you have when you have to deal with an awful lot of printing, as has been the case over the last few years."
The debit cards can be used wherever Visa debit cards are accepted, or can be used at a bank or ATM to withdraw cash.
But benefits recipient Jerry Ryfinski sees a problem. "Whenever you give anybody a plastic card, whether it be a debit card, a credit card, a gift card, what they're going to do is spend it, usually about as quickly as possible. So I don't think it really encourages responsible use of the money that way," he says.
But Newsom says if that's a problem direct deposit is always an option. It has been available at the agency since 2008.
You can find out more about the prepaid debit cards or direct deposit for unemployment benefits at www.dew.sc.gov and click on the "Latest News" section.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement