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The Kansas Department of Labor says it soon will distribute unemployment benefits on prepaid debit cards instead of mailing checks. The state anticipates the switch to happen in November, a department spokesperson tells CardLine sister publication ATM&Debit News. Citi Prepaid Service, a division of Citi's global transaction services unit, will help the state issue the personalized Visa-branded cards, which benefit recipients could use to make purchases or ATM cash withdrawals. The labor department expects the switch to save the state more than $300,000 in postage and paper-handling costs. Recipients will continue to have direct deposit as an option. The department did not base its decision solely on cost savings, the spokesperson says. "We're catching up with how people use debit cards in their daily activities," she says. Unemployment recipients will receive funds in less than 24 hours. If a recipient files a weekly unemployment claim on Monday, the state will reload the debit card with the appropriate amount on Tuesday. Most recipients file claims on Monday, but they can do so at any time during business hours, the spokesperson says. If recipients choose a debit card, they will receive materials explaining how the card works, where it can be used and the locations of surcharge-free ATMs, the spokesperson says.
