OT: Economic stimulus debit cards

[fiamme red]

My father just got mail from Money Network Cardholder Services, and enclosed was a Visa card from MetaBank that looked like the usual pre-approved credit card offer. He wasn't sure if it was legitimate, so I looked it up and found that it was his federal stimulus payment on a prepaid debit card.

I'm glad he didn't throw it out with the rest of his junk mail, as some others have: https://www.marketwatch.com/story/check-your-junk-mail-4-million-americans-are-getting-their-stimulus-payments-as-prepaid-debit-cards-not-checks-2020-05-27.

[batman1425]

Yea, not labeled very well from what a few of our friends have mentioned. That hasn't stopped folks from looting mailboxes around the neighborhood looking for them however. One of our neighbors had their entire locking mailbox taken.

[Tickdoc]

how do they determine how much you get? I got mine last week, btw.

[batman1425]

how do they determine how much you get? I got mine last week, btw.

Prorated by your income with a maximum of $1200/person if you don't have any kids. Get a bit more for each qualifying child. Income for the calculation is taken from your previous years tax return.

[Clean39T]

...

[Spaghetti Legs]

That’s very interesting; looks like the Fed has brought in a middleman to make some money off the payouts. I wonder if there was a fee paid for this or the middleman just gets to keep the unused balances on the debit cards, of which I’m sure there will be a lot.

I recognize that a lot of people don’t have checking accounts and a debit card is probably best way to get money to them but for a program like this, that is horribly inefficient.

[kppolich]

it'll surely make it easier to track where people spend their funds. Any restrictions on what this new card can purchase? Thinking back to my days working in a grocery store and the WIC or EBT debit cards and qualifying items.

[makoti]

Got mine on a card. Almost tossed it. Had to google it to be sure it wasn't a scam before I trusted it enough to do anything. All I wanted was to put it all into my checking account (no fee for that). It took about 10 steps to do that. Jeez.

[Plum Hill]

One of he news programs had a feature about people that tossed or cut up the cards thinking they were pre-approved credit cards. One could blame them for not checking. OTOH a poor way of doing things from our government.

[C40_guy]

it'll surely make it easier to track where people spend their funds. Any restrictions on what this new card can purchase? Thinking back to my days working in a grocery store and the WIC or EBT debit cards and qualifying items.

There's no reason for the spending to be tracked (although I'm sure it will be and will be reported on by the administration). The direct deposit and the paper checks weren't trackable.

Hookers, blow and esoteric bike parts are all within scope. Make your own adult decisions. :)

[Mikej]

These cards are for those that did not get direct deposit already? Or an additional free money I don’t need and can pay interest on until my kids are old enough to pay the rest?

[Peter P.]

So why did I get a paper check? (Received it one week ago.)

[MattTuck]

Is this a new payout?

I got mine direct deposited a month or so ago.

[likebikes]

i still think it's a scam

[Clean39T]

...

[el cheapo]

The pre-paid cards are legit. Wonder if the intention by the government was to confuse people into throwing them away? Excellent way to save on the payout program.

[soulspinner]

Just bought bike stuff with my prepayed card from uncle sam:banana:

[Spaghetti Legs]

The pre-paid cards are legit. Wonder if the intention by the government was to confuse people into throwing them away? Excellent way to save on the payout program.

Except the card mentioned by the OP came from a 3rd party, so sounds like the government contracted out and someone else is making money on it.

[makoti]

Those folks can still get replacement cards, right? But of course how many will......

Same scam, er...natural business decision, most retailers make when issuing gift-cards - not only is there a service fee, but a certain percentage simply disappear into the ether and the issuer gets to pocket the funds eventually.

Yes, for a price. The list of fees included "replacement card". I think it was $12

[Kyle h]

I would wager it’s a move to get people to spend their stimulus instead of save it. I would say if the people I’ve talked to about it, a lot are saving which kind of goes against the purpose of it.

[oldpotatoe]

One of he news programs had a feature about people that tossed or cut up the cards thinking they were pre-approved credit cards. One could blame them for not checking. OTOH a poor way of doing things from our government.

What a surprise..my sister in law got one of these..no requrest or anything else to get it in this form..PITA to get it into her bank account, particularly when she(older) doesn't want to sit inside a bank.
Wonder if the intention by the government was to confuse people into throwing them away? Excellent way to save on the payout program.

Or most won't use the entire amount if using as a card..A BIG selling point for those who sell these programs in retail places..

For right above...
I would wager it’s a move to get people to spend their stimulus instead of saving it
What happened: With spending falling faster than income, the savings rate shot up to 13.1% from 8% in February. That’s the highest rate in 39 years.

People aren't going out, aren't 'spending' but I think a LOT are saving rather than spending to prepare for the next crisis..what is going on right now in many cities..or the next one..I think an "iphone every year" times are over..they are for us...

[soulspinner]

i still think it's a scam

Just bought bike stuff with the card. Not a scam but a pain in the arse compared to direct deposit that we have. Also no place in the world does my professional wife use my last name but that's what the card says. Any thoughts how that happened?

[oldpotatoe]

Just bought bike stuff with the card. Not a scam but a pain in the arse compared to direct deposit that we have. Also no place in the world does my professional wife use my last name but that's what the card says. Any thoughts how that happened?

HA...my wife got a check for her deceased mother..it even said her name, then DSC on it...:eek:The goats are loose.

[smontanaro]

... someone else is making money on it.

That seems to always be the case. Witness the paycheck protection program administered through banks where the fees the bank received were proportional to the size of the loan. Why bother with a skimpy $500k loan when you can make 10x in fees for a $5M loan (doing essentially the same work)?

[JONATHANPATTIE]

STIMULUS : a thing that rouses activity or energy in someone or something; a spur or incentive. a plastic card.

[ultraman6970]

The gvmt has more control to know on what the money has been used, just ask the card company and they can tell them. Statistic purposes, that helps planing because they can reinforce the production or channel stuff to those areas the people is consuming the most, which IMO is not bad.

[soulspinner]

HA...my wife got a check for her deceased mother..it even said her name, then DSC on it...:eek:The goats are loose.

:eek::eek::eek::eek:

[donevwil]

I volunteered the Federal Work Share program offered by my employer, work a 32 hr week and receive unemployment for the remaining 8 so they don't have to lay anyone off. The EDD sent me a debit card for the $$, reloaded bi-weekly.

Interesting idea, but would seem to make far more sense for a single stimulus payment than unemployment. Also received debit cards when I recently ditched AT&T and Directv, so I now have three debit cards in my wallet and it appears most stores do not allow their use if the balance isn't equal to or exceeding the purchase total. Annoying!

[rounder]

I got a paper check for me and my wife. Not sure how/why the government started offering bank cards for the stimulus payments, but I read that some people have tossed their cards because they believed they were junk mail. I have not seen any instructions for reclaiming their lost stimulus funds.

[flying]

deleted...found answer in article linked

[yngpunk]

Also received debit cards when I recently ditched AT&T and Directv, so I now have three debit cards in my wallet and it appears most stores do not allow their use if the balance isn't equal to or exceeding the purchase total. Annoying!

Not sure what stores you are trying to use them at, but check the card balance before hand, and then ask the cashier to charge the balance to the debit card and then pay the balance via some other means (another card or cash). Alternatively, you can use the debit card to buy an Amazon gift card for your Amazon account.

[pasadena]

The debit cards are a huge moneymaker for the banks. Just another fleecing of American taxpayers.
Added to the junk mail effect, it is also difficult for people to track and use all of the money in their accounts- millions of accounts that the debit card owner did not sign up for btw.
That is 100s of millions collecting interest for the banks.

I got a paper check for me and my wife. Not sure how/why the government started offering bank cards for the stimulus payments, but I read that some people have tossed their cards because they believed they were junk mail. I have not seen any instructions for reclaiming their lost stimulus funds.

[donevwil]

Not sure what stores you are trying to use them at, but check the card balance before hand, and then ask the cashier to charge the balance to the debit card and then pay the balance via some other means (another card or cash). Alternatively, you can use the debit card to buy an Amazon gift card for your Amazon account.

I've tried, Trader Joes, Whole Foods, Raley's, local super market. All say they can't do it. Just annoying not insurmountable, find a store that accommodates and cash them out. Obviously someone is making money on this.

Gift cards are a good idea, nephew's b'day is coming.

[Johnnyg]

So is there money in the account when you receive the card?

[Davist]

The debit cards are a huge moneymaker for the banks. Just another fleecing of American taxpayers.
Added to the junk mail effect, it is also difficult for people to track and use all of the money in their accounts- millions of accounts that the debit card owner did not sign up for btw.
That is 100s of millions collecting interest for the banks.

uh, no, the fleecing was the trillions spent on ? not sure/CARES/covid.. this is part of it. $70k per household ($7T/100M households roughly) devaluing M2 (was $20T now it's nearly $30T) etc. The only bipartisan thing in the last decade, right? Using a 3rd party to manage debit cards seems like a smart move, efficiency wise. Agree they shoulda told us. I was surprised to receive one at all don't want it but anyway..

IF your tax return didn't have "up to date" (within last 2 years) direct deposit info they sent this, as I understand it.

[C40_guy]

IF your tax return didn't have "up to date" (within last 2 years) direct deposit info they sent this, as I understand it.

I thought checks were sent out to those without DD info...maybe somebody wanted to direct some debit card business to a banking friend...or figured out that while a high percentage of checks would be deposited/cashed, a lower percentage of the money sent via debit cards would actually be used. And the money spent could be tracked...

[Davist]

I thought checks were sent out to those without DD info...maybe somebody wanted to direct some debit card business to a banking friend...or figured out that while a high percentage of checks would be deposited/cashed, a lower percentage of the money sent via debit cards would actually be used. And the money spent could be tracked...

Could be, definitely debit/gift cards are a big money maker and you get tracking.. again, my DD info wasn't up to date (I write a check every year to taxes, no free loans to gov't)

[unterhausen]

I guess they didn't use last year's tax returns to calculate ours, I don't understand the amount at all

[bigbill]

It's probably in here somewhere, but tax prep software such as turbo tax didn't transfer DD information to the IRS data base for sending out checks. You have to go to IRS.gov to update your data. My son got his direct deposited into his account, my dad and his wife live on SS and their checks were DD as well. I don't get one.