If you’re still expecting to receive a stimulus payment from the IRS in the form of a paper check, there may be a surprise coming in your mailbox soon. The U.S. Treasury Department has announced that the IRS will begin sending out four million stimulus payments on prepaid debit cards instead of mailing paper checks. With these so-called “Economic Impact Payment” (EIP) cards, clients can make purchases, get cash from in-network ATMs and transfer funds to their personal bank account without incurring any fees. They may also check their card balance online, by mobile app or by phone at no cost.
EIP cards will be available to taxpayers who don’t have bank account information on file with the IRS.
The EIP cards can be used online, at ATMs or at any retail location where Visa is accepted. This free, prepaid card also provides consumer protections available to traditional bank account owners, including protections against fraud, loss and other errors. It will include instructions on how to activate and use the cards.
“Treasury and the IRS have been working with unprecedented speed to issue Economic Impact Payments to American families. Prepaid debit cards are secure, easy to use, and allow us to deliver Americans their money quickly,” said treasury Secretary Steven T. Mnuchin in a press release. “Recipients can immediately activate and use the cards safely.”
However, be informed that the agency estimated it might take as long as four to five months to mail out the millions of remaining payments. Contact us for additional information, or to discuss your specific situation.