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27/10/2010 -
New Jersey recently announced that it will begin replacing unemployment checks with debit cards or direct deposit, making it the 30th state to do so, the Star-Ledger of Newark reports.The state hopes to save between $7 and $8 million annually on printing and mailing by phasing out paper checks. Officials negotiated a deal with Bank of America, naming the financial institution to be the debit card provider for the unemployment funds.
California recently announced that it plans to start transferring unemployment payments to debit cards starting this December and expects to save $4 million a year, according to the OC Register.
This summer, South Carolina announced it would also make the transition with the hopes of using only debit cards and direct deposit by the beginning of October. The states debit cards are also sponsored by Bank of America and Visa, and can be used at any merchant that accepts Visa.
"The use of debit cards and direct deposit offers a faster and more secure option for claimants and helps them avoid check cashing fees," said the executive director of South Carolina's Department of Employment and Workforce John L. Finan.
