It appears that even the unemployment system in the country is being modernized. This is the case in Wyoming and at least 29 other states scattered throughout the nation. There will be no more standing in line or waiting for the unemployment check to arrive in the mail in the Equality State. Those collecting unemployment can now choose to receive their compensation in the form of a debit card that can be used to make purchases and pay for expenses. While this sounds like an efficient way to collect unemployment, there are pros and cons to this type of income.
The primary benefit of collecting unemployment on a debit card is that it speeds up the process. It gives that extra speed to the Unemployment Insurance Division of the Wyoming Department of Workforce Services, which is responsible for processing unemployment payments, to distribute the money to the recipients. Additionally, it means that the individuals waiting for the money are able to receive it and access it much faster than in the past which alleviates a trip to the bank or check cashing store.
Another benefit is that the use of these cards saves the state money for postage and handling. These state dollars saved than passed on to other important programs for the people residing in Wyoming.
However, one of the disadvantages that some individuals run into while using the cards is rooted in banking policies. If the recipient of the debit card does not have an account at the same bank that issued the debit card, it makes it harder to use the debit card and to access cash. Such obstacles include banking fees associated with using a debit card. For example, debit card users are charged up to $1.50 transaction fee each time they withdraw money from an out-of-network ATM. In other words, there is always a fee when transaction occurs at an ATM not owned by the issuing bank.
All these fees and hidden costs is something to consider for a person without a steady employment income. Each card carries its own terms and conditions, so users should read and understand this information fully prior to opting to use the card. Beyond withdrawal transaction fees, debit card users may also encounter fees for checking the balance on the card, contacting the customer service center, or for using the card too many times in a set period. Overdraft fees also apply to the debit account. Meanwhile, new federal government regulation under the Dodd-Frank bill, poised to cap profits banks make of merchants on debit cards may result in even higher fees to the debit card user, yet.
Alternatively, individuals collecting unemployment can choose to receive a paper check in the mail or use direct deposit into a bank account. No matter which option is selected, make sure you are well informed prior using the card so you can wisely or else pay the consequences.