With direct payments back on the table in the latest relief bill negotiations, it’s possible that Americans will see cash payments early in 2021. However, millions of these payments would be sent in the form of an EIP debit card, which, as we saw in June, confused many people, some of whom threw the cards away. Here’s how to avoid that the next time around.
What is an EIP card?
It’s not yet clear what the cash amount for a second relief payment might be, but qualified recipients would receive relief payments by check, direct deposit (more on that later), or in the form of a Economic Impact Payment (EIP) card, which is a prepaid Visa debit card from the Treasury Department. These Visa debit cards will be sent to the address you last registered as part of your tax return with the IRS, and they can be used for debit purchases, cash withdrawals from participating ATMs, or for transferring money to your personal bank account (remember this is a prepaid debit card with funds preloaded by the government, so it has nothing to do with your personal bank account).
One of the advantages of these prepaid cards is that they reach the 25% of Americans who are underbanked, and likely to need the cash the most. Unfortunately, qualified recipients have overlooked these cards in the mail, delaying their payments unnecessarily.
Don’t miss your EIP card in the mail
As a security measure, prepaid debit cards were previously sent in plain, unassuming envelopes to ward off thieves, but this has also led to some confusion for many people, as it looks like junk mail. Although it’s not certain whether it will be the same in a second round of checks, look for “Money Network Cardholder Services” on the return address on the envelope, as that might be your card. You will be mailed the card, along with important information, instructions for activation, fees, and a note from the U.S. Treasury.
What if you do lose the EIP card in the mail?
While we’re talking about proposed relief payments, the policies around EIP cards like replacements aren’t expected to change. Currently, if you lose or destroy your first card, you can get a replacement card sent by calling the IRS at 800-240-8100 (choose the second option from the main menu). The fee for the first replacement card will be waived, after which you’ll be charged $7.50.
For more information on EIP cards, check out EIPcard.com’s FAQ page for answers to common questions, as well as their ATM Locator Tool to find ATMs that won’t charge a fee.
Want to avoid snail mail? Try direct deposit
If you received an EIP card the first time, it’s very likely that you will receive it for a second direct payment. However, you can avoid the risks associated with mail fraud by registering with the IRS for a direct deposit into your bank account.
It’s not clear yet if the IRS will use the Get My Payment or Non-Filers: Enter Payment Info tools used for the first checks, but you can register here for direct deposit with IRS as part of your tax return early next year.