Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Innovative Use of Debit Cards Reduces Government Costs

Innovative Use of Debit Cards Reduces Government Costs

By
Add to Favorites:
Innovative Use of Debit Cards Reduces Government Costs

Everyone, everywhere, including state and federal government agencies, is trying to save money and cut back on expenses these days. Fortunately, the mindset of saving combined with the advancement in technology is allowing costs to be cut and savings to be gained—all in some very innovative ways.

Nebraska Receives Recognition

The State of Nebraska recently received recognition in Washington D.C. for its efforts. The state was able to reduce the costs to taxpayers when it comes to child support payments issued by the state. This effort is leading the way to reducing costs for the taxpayers of the state. Nebraska Child Support Payment Center uses an innovative approach to issuing these child support payments. The agency issues the payments using prepaid debit cards. Its recognition in Washington D.C. is hailing the agency as a role model that is worth emulating.

Troy Reiners, director of the Nebraska Child Support Payment Center, said approximately 97% of child support payments are now done through direct deposit or prepaid debit cards. Without the cost for printing checks and the postage for mailing them, costs have gone from $385,000 in 2003 to $26,700 in 2010.

It’s Not the First Time

States like Georgia have been testing out the prepaid debit card program for state tax refunds. For now, it is a pilot program, but Nebraska is certainly not the first state to try these prepaid debit cards as a means to cut costs and ease the process of getting money into the hands of taxpayers and consumers. In addition to saving the government and taxpayers money, prepaid debit card programs also serve the millions of Americans around the country that do not have a bank account in which to deposit the check or cash the check without paying check cashing fees.

It’s on a Federal Level

In addition to the state programs, the federal government too has been giving the prepaid debit card program a whirl as a means to cut costs. In January 2011, the federal government announced that it would allow some taxpayers to opt to receive their federal tax refunds on a prepaid debit card instead of direct deposit or a paper check. This is expected to save the Internal Revenue Service $43.5 million for the 2010 tax season. It costs the federal government approximately $45 million to send out the 45 million paper refund checks that go out to taxpayers and reissuing checks that get lost in the mail, while the debit card program is only expected to cost $1.5 million.

Add to Favorites:

Related News:

Citi Increases the Number of ATMS

By Dar Dowling, Posted: January 23, 2017

Citibank has just inked a new deal with Cardtronics, a ATM owner/operator, which will just about double the number of free ATMs in their U.S. network. Continue reading
Fifth Third Bancorp Upgrades App

By Dar Dowling, Posted: January 20, 2017

Fifth Third Bancorp has upped the ante when it comes to their mobile app, in terms of how many ways users can pay for merchandise – now letting them make payments with all of the available payment platforms. Continue reading
New Credit Card by Amazon and Chase

By Dar Dowling, Posted: January 19, 2017

Amazon.com, Inc. and Chase have joined together to roll out the new Amazon Prime Rewards Visa Signature Card offering 5% back on all Amazon.com purchases. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. We’ll automatically match all the cash back you earn at the end of your first year. New cardmembers only.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit