Florida residents drawing unemployment benefits will have the option of a debit card instead of direct deposit or a check beginning this fall, according to the state work force agency.
The debit card system is expected to save Florida about $317,000 a year, said Robby Cunningham, spokesman for the state's Agency for Workforce Innovation. But critics point to concerns about the agency's ability to make the switch easily, based on its aging computer system, and express concern about potential fees for users.
The agency has contracted with Affiliated Computer Services, a Dallas company that operates debit card systems for 10 states. The unemployed will be able to use the cards at any Wachovia/Wells Fargo or MoneyPass ATM for free.
Unemployed workers also will be able to use the debit cards at any restaurant, store and other locations where Visa-branded cards are accepted. There are no restrictions on what can be purchased with the debit cards and users also will be able to get cash back on purchases without a fee at many locations, Cunningham said.
Harold Pratt, 54, former commodities broker in Coral Springs seeking a management position, said he would prefer his unemployment benefits be deposited in his checking account. "I can check to see that I received the benefits. With a debit card, I won't know it until I go to a machine and find out what's on the card, and then it could say 'insufficient funds,'" he said Tuesday.
The schedule of fees provided by the state work force agency reveals that if someone on unemployment benefits tries to withdraw cash from an out-of-network ATM, the user could be charged $2.25 a transaction, up to a $3 ATM surcharge, and 75 cents to check the balance. However, a user who limits withdrawals from an out-of-network ATM to twice every two weeks won't be charged, the agency said.
When an unemployed worker loses a debit card, there's no fee to replace it. However, additional cards will cost $4 each, with a $14.50 expedited delivery fee, according to the agency's agreement.
If the balance falls to zero on the card, there will be no overdraft fees because the card owner would only be able to purchase up to the available amount on the card, Cunningham said.
Unemployment insurance debit cards have been controversial in other states because of the fees associated with them, taking money out of unemployed workers' pockets when they can least afford it.
