Georgia to Issue State Tax Refunds on Debit Cards - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Georgia to Issue State Tax Refunds on Debit Cards

Georgia to Issue State Tax Refunds on Debit Cards

Georgia to Issue State Tax Refunds on Debit Cards
The content is accurate at the time of publication and is subject to change.

Taxpayers in Georgia who don’t have bank accounts will get a little help from their state government because they may be able to receive their tax refunds on a debit card. Georgia joins the federal government, which announced in January that it would offer 600,000 low- to moderate-income taxpayers to receive their refunds via a debit card rather than a paper check.

The Underbanked

Millions of U.S. households are “underbanked” — they do not qualify to establish a basic checking or savings account. Without a bank account, there is nowhere to deposit a tax refund check. Many of the underbanked must turn to check-cashing services that charge a fee.

Purchases

Debit card tax refund options benefit consumers, whether they are underbanked or not. The primary benefit of issuing tax refunds on debit cards is the flexibility. Recipients can use the refund card like they would any debit card to make purchases at stores, online or to pay bills to creditors that accept debit or credit card payments. Taxpayers with bank accounts can deposit the money on the card as they would a check.

Pilot Programs

The U.S. Treasury actually mailed out four slightly different kinds of cards — some offer a linked savings account, and some will charge a $4.95 monthly fee — with several different marketing messages in an attempt to find the most effective approach.

The ultimate goal is to eliminate paper refund checks entirely. The government spends an estimated $1 per paper check, including the cost of reissuing lost checks, while electronic transfers cost about 10 cents each. The pilot debit card program is expected to cost $1.5 million.

Consumer advocates have praised the plan, but some Congressional Republicans are skeptical. In a letter to Treasury Secretary Timothy Geithner, Reps. Dave Camp of Michigan and Charles Boustany of Louisiana raised concerns about the fees and said the plan had started as a simple program and “morphed” into a plan to provide bank accounts, which they said was a task better handled by the private sector.

Georgia is also running the debit card program as a pilot program. Of taxpayers who choose to receive their refunds as a paper check instead of a direct deposit, some will be chosen to receive a card. The taxpayers with the cards will be asked for feedback via an online survey.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Chase Freedom Categories for January Unveiled

Posted: December 17, 2018

With the Chase Freedom credit people earn 5% cash back in three bonus areas per quarter, and they have just announced the offerings for the next quarter. Cardholders will earn enhanced rewards when they pull up to the gas station, make ... Continue reading
Get 100,000 Bonus Points with the Radisson Rewards Premier Visa Signature

Posted: December 14, 2018

If you have been thinking about getting the Radisson Rewards Premier Visa Signature credit card, now might be the time to take another look because it now comes with 100,000 bonus points. This is a limited time offer, which is in play from ... Continue reading
Minor League Baseball and Allegiant Airlines Partner Up

Posted: December 13, 2018

Allegiant Airline and Minor League Baseball have inked a deal paving the way for a credit card partnership, one giving fans a credit card that reflects their fandom in terms of rewards whether they are traveling or catching a game. When ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!