State offering up debit cards

Instead, recipients will be issued debit cards.

The change, Department of Employment, Training and Rehabilitation officials announced Tuesday, is expected to:

• Save the state money on printing and mailing paper checks.

• Reduce the incidence of lost or stolen checks.

• Get money to unemployed people more quickly.

Switching to debit cards also is expected to save many unemployment beneficiaries money because there will be no need to cash checks at banks or other locations that might charge a fee.

“This program results in a win-win situation,” said Cynthia Jones, administrator of the agency’s Employment Security Division. “Citizens will experience better customer service while at the same time the division will save costs associated with mailing paper checks.”

About 800,000 checks are printed and mailed to more than 120,000 benefit recipients each year.

Those eligible for the weekly checks will get the money faster with the use of the debit card, according to the agency. Once a recipient receives a debit card, funds can be added to the card automatically by the agency each week once eligibility has been reassessed.

Because recipients can opt out of the debit card program if they want to continue receiving a check, precise cost savings using the new system have not been determined.

“This new electronic payment system is a safe and reliable way of delivering unemployment insurance benefits,” agency Director Larry Mosley said. “This is simply a more efficient way of administering the unemployment insurance program. It will greatly reduce issues related to fraud and theft, thereby providing greater peace of mind for recipients.”

Sixteen states provide unemployment benefits by debit card and 27 states are in the planning stages or considering the method, he said.

Gov. Jim Gibbons commended the agency for finding ways to improve service and save money.

“This is a more convenient method of receiving payments for unemployed workers who need their benefits without delay,” he said in remarks accompanying the agency announcement.

Recipients will be able to access their benefits through ATM machines nationwide. They will be allowed to make two free withdrawals per month from any Wells Fargo ATM and will be able to use their debit cards at no cost at any merchant that accepts credit cards, Jones said.

The program provides unlimited bank teller cash back at any bank displaying a Visa acceptance mark.

Debit card users will have unlimited free Web access to their account and transaction history. They will have available automated notification via phone or e-mail when a deposit is posted to their card.

The program will be implemented in phases. Notifications will be mailed informing people about the program. The division began mailing notifications Tuesday to claimants explaining the program with instructions on how to opt out if they prefer to receive paper checks.

Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or (775) 687-3900.