California to Issue Debit Cards For Disability, Family Leave Benefits

by Mercator Advisory Group 0

Prepaid load values are about to get another big bump as Bank of America deploys prepaid cards for the state of California. This article indicates that:

“Californians drawing disability insurance and paid family leave will soon use EDD-issued debit cards to get their money as the state’s massive benefits programs phase out traditional paper checks.”

“The move from paper to plastic – announced Tuesday – is scheduled to be completed by March and is expected to save the state’s Employment Development Department about $4 million initially while giving disability and family leave recipients quicker and easier access to their money.”

This is a prelude to the potential $23 billion bump in prepaid load which will be driven by California adopting Prepaid for State Unemployment which is expected to begin rollout in June:

The EDD issued 41 million checks in 2010 paying a total $27 billion in unemployment, disability and paid family leave benefits, state employment officials reported.

Nearly $23 billion of that was paid out in unemployment benefits last year as the state’s jobless rate soared into 12 percent territory.

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