IRS Reminds Consumers They May Receive EIPs Via Prepaid Debit Cards

Posted: May 29 2020

The IRS has 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 four million EIPs via prepaid cards, versus the roughly 150 million already issued via ACH transfers.

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, the IRS said. Prepaid cards also offer fraud and other protections available to traditional bank account holders. The IRS also updated its FAQs on EIPs to address questions it has received about prepaid debit cards.

To read more visit: https://www.irs.gov/newsroom/economic-impact-payments-being-sent-by-prepaid-debit-cards-arrive-in-plain-envelope-irsgov-answers-frequently-asked-questions