Gov. helps banks with new way to take your money.

[dixiegrrrrl]

The new game on the horizon is government issued debit cards, for tax refunds and Soc. Sec. payments.

Debit cards are a HUGE business. Small companies who make these cards are rapidly being bought up by large
companies, I read recently.

But use of the card can come with a fee to the customer per transaction.

This month, along with the Soc. Sec. check, was an insert encouraging people to sign up for the card.

And this story describes how the Treasury Dept. is pushing the cards:

"The Treasury Department is rolling out a new program to let people collect tax refunds on government-issued debit cards, rather than via checks sent in the mail, the government announced Tuesday. By allowing consumers to collect their refunds electronically, the new program would prevent Americans from leaning on expensive check-cashing services to access their tax refunds."

but, as the story goes on to add:
"There are caveats, however. When consumers want to withdraw cash, they'll have to use one of 15,000 designated ATMs nationwide. Like with conventional debit cards, using the Treasury card at an ATM outside the network comes with a fee from the hosting bank."

http://www.huffingtonpost.com/2011/01/13/debit-cards_n_808840.html

another story reports:
"If taxpayers use a machine out of the network, the fee will be $2.50, plus any charged assessed by the ATM owner."

http://weblogs.baltimoresun.com/business/consuminginterests/blog/2011/01/treasury_to_offer_tax_refunds.html


The use of debit cards instead of checks, currently aimed at people who do not use banks, ( food stamps come on a debit card now) will surely spread to those with banking accounts,if fees prove lucrative to banks.

[Uben]

1. Why not just give it all to the banks first?

Cut out the middle-man, the American tax payer, and just let the banks have all the money. This would save banks a ton of money and time by not having to charge excessive fees and interest rates to get it all back. I can't believe the government hasn't figured this out yet.

[CurtEastPoint]

2. The govt has clout. It could tell the banks 'NO FEES'. But did they? No. Shocking! n/t

[girl gone mad]

3. Food Stamps are big business for Goldman Sachs.

Have you heard about this? Ugh.