The Department of Labor recently updated its regulatory guidance to state workforce agencies on using state-administered debit cards for unemployment compensation benefits, including guidelines for negotiating terms with debit card providers.
Among other things, the Labor Department advised against revenue-sharing agreements with debit card providers where the state receives a portion of the revenue. It also advised states to negotiate with providers to allow for as many free in-network ATM withdrawals as possible, to expand free access to out-of-network ATM transactions where available, and to eliminate fees for overdraft protection and eliminate or reduce denial fees. The guidance also reiterated the department’s recommendation that payment of unemployment compensation be conducted through direct deposit rather than state-administered debit cards for individuals with bank accounts.
