Staff Report
Published July 15, 2010

The S.C. Department of Employment and Workforce announced that it will soon eliminate paper checks for weekly unemployment payments, saving the agency more than $4 million a year in check processing and mailings.

The agency will offer two electronic payment options for the jobless in South Carolina to receive benefits.

The department will offer claimants a choice of receiving their benefits on a prepaid debit card or by direct deposit into their bank or credit union account.

“These new methods of delivering unemployment benefits are part of a conscious effort to streamline our service delivery system in a more efficient and cost effective manner,” said Executive Director John L. Finan. “The use of debit cards and direct deposit offers a faster and more secure option for claimants and helps them avoid check cashing fees.”

The agency, in cooperation with Bank of America Merrill Lynch and Visa, will provide the option of Visa prepaid debit cards to unemployed South Carolinians as they apply for unemployment insurance benefits. Once the claimant is determined to be eligible, the payment will be deposited directly to their debit card account. Available funds will be limited to the amount of their benefit payments and the card may be used in the same way as cash.

The prepaid debit card can be used to make purchases anywhere Visa debit cards are accepted.

In addition to being able to get cash back from merchants with a purchase, claimants can get cash from ATMs and from tellers at banks accepting Visa cards. There is no fee to obtain a card but some fees may apply for certain transactions. Claimants can avoid fees through careful use of the card, department officials said.

A complete schedule of fees will be provided with the cards when they are mailed to claimants in three to five days after their eligibility has been certified.

Claimants may also choose to have their benefits deposited directly to a traditional bank account, an option that has been available in South Carolina since November 2008.

The employment department has been testing the debit card program in three pilot areas for the last two months and will begin offering it statewide Monday. While the debit card and direct deposit option will be offered first to new claimants, it is hoped that the agency can expand these options to all claimants statewide and move toward a totally paperless benefits delivery system by Oct. 1.