Other options for receiving unemployment benefits include a direct deposit to your bank account or prepaid card or, in some states, a paper check delivered by mail. Here’s information on options for receiving unemployment benefits, how state-issued prepaid debit cards work, how often you’ll be paid, and what to do if there’s an issue with your benefit payments.
Unemployment Compensation Payment Options
When you file for unemployment, you will be advised of the options available for receiving benefits. Unemployment benefits are typically paid through a direct deposit to your bank account, credit union account, or prepaid card. Most states provide an option to receive benefits through a state-issued prepaid debit card. Some states still issue paper checks. Others don’t because it is far less expensive to process benefits electronically. In the states with electronic payments, options for receiving unemployment benefits include having a direct deposit transferred straight to your bank account or having your benefits added to a bank debit card. For example, in Connecticut, claimants have two options for payment: direct deposit or a debit card. The benefits of using a state-issued prepaid debit card include the following:
You will receive a free card by mail.Benefits are automatically loaded onto your card for free.It’s faster and safer than a paper check.
How Unemployment Debit Cards Work
After you sign up for benefits, your card will be mailed to you. Once it’s received, you will need to activate it and set up a PIN in order for it to receive funds from the government. You’ll receive your funds according to a schedule determined by your local unemployment office. You can also pay bills with your debit card. For example, you may be provided with a Chase Visa card, a KeyBank K2Benefits debit card, a Bank of America Mastercard, or another bank-issued card. When you use your card, it won’t be apparent to a retail store or anywhere else you use it that it’s an unemployment payment card. Your card will be similar to a personal debit card. In addition, you may be able to transfer funds from your unemployment debit card directly to your bank account via a direct deposit transfer if you want to pay your monthly bills that way. Check with your local bank to see if they provide this service.
How Often You’ll Be Paid
Payments are typically made on a weekly or biweekly basis, depending on your location. To find out how to sign up for (or change) your unemployment payment option, check with your state unemployment office.
What To Do if You Don’t Receive Your Payment
If your payment is more than a few days late, call your unemployment office. They will be able to provide you with information as to whether or not your payment has been processed and what to do if your payment is delayed or there’s been some kind of issue.
What To Do if You Lose Your Debit Card
How To Avoid Unemployment Debit Card Scams
Unemployment debit card scammers are thieves who target unemployment recipients in order to get their hands on their funds. The good news is, you can protect yourself. Unemployment offices do not ask for your personal information once your claim is set up. Therefore, most likely you’re dealing with a scammer if you receive a phone call, email, or text message requesting the following information:
Social Security numberBank card/direct payment card numberDirect deposit account numberPIN
To protect your privacy, do not provide any of the above information to a third party.
