The IRS today issued a reminder to consumers still awaiting their CARES Act economic impact payment that they may be receiving the payment on a prepaid debit card. Prepaid cards will arrive in plain envelopes from “Money Network Cardholder Services,” the IRS said. The IRS plans to issue approximately 4 million EIPs via prepaid cards.
Individuals who receive prepaid cards will be able to make purchases online and at retailers where Visa cards are accepted, withdraw cash from in-network ATMs, transfer funds to a personal bank account and check their balances online, by phone or through a mobile app. Prepaid cards also offer fraud protections and others available to traditional bank account holders. The IRS also updated its FAQs on EIPs to address questions it has received about prepaid debit cards.