Some stimulus payments coming on debit cards
Some eligible recipients of the economic impact payment are receiving their $1,200 on a debit card from Money Network Cardholder Services.
Certified financial planner Joseph Gugino learned about this new way of receiving the economic impact payment this past weekend, when his in-laws received a debit card that was stated to be the payment. The in-laws almost threw the card away, thinking it was a scam.
“I had a client call me the other day and ask about the card — after she had already cut it up and threw it in the trash,” Gugino said. “I told her that it was a real thing, so she taped it up and deposited it into her bank.”
The Visa debit card comes in a plain-looking envelope that comes from Money Network Cardholder Services. There is a letter attached stating that it is the economic impact payment with a Department of Treasury logo on the letter as well. The card itself will have the name or names of the taxpayers on it, the primary taxpayer being labeled first, then the spouse, if applicable.
“There is stimulus money going out to people and they are throwing them out,” Gugino said. “Don’t throw the card away.”
If the card is thrown away, there is a way to get a replacement card, but it comes at a price. It may cost people about $25 to have another card sent to them.
As for why the economic impact payment is coming via cards now, is slightly a mystery. The IRS has not released any information on why they have started to deliver the payments via debit card, but there are a couple theories.
“I couldn’t find any rhyme or reason as to why one person got a check and another person got the card,” Gugino said. “But I do know that this whole process was very rushed and they just wanted to get money out fast.”
One theory some believe is that sending the payment via a debit card is getting them to spend the money on the card, to get the economy back up and running smoothly. Others believe it is because people have post office boxes and cannot receive checks through them.