Government Prepaid Cards Lower Costs and Improve Access

Government Prepaid Cards Lower Costs and Improve Access

For decades, governments have sought to maximize the use of electronic payments and minimize the use of paper checks when making payments to individuals. While direct deposit has been the preferred method for making electronic payments, it can only be used with individuals who have a bank account. It is estimated that 1 in 12 households in the United States do not have the option of receiving payments via direct deposit because they are unbanked, meaning they don’t have a bank account. As a result, a number of government agencies have adoped a prepaid debit card as a way to make electronic payments to these unbanked individuals.

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