“Goodbye” for Credit and Debit Cards Soon

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“Goodbye” for Credit and Debit Cards Soon

"Goodbye" for Credit and Debit Cards Soon

Following the federal government’s lead, state governments are migrating more payments — for everything from unemployment to child support — away from paper checks. But while some experts hail the move to debit cards and direct deposit as safe and convenient for consumers, it also brings a list of rules, restrictions and fees that can trip up consumers who don’t do their homework. The movement away from getting government payments via checks is clear. The federal goverment soon will mandate that payments be received by direct deposit or debit card. For recipients of  state benefits and state-administered payments, the same holds true: For many, debit cards and direct deposit are now the only ways to receive payments. For the states, the switch is largely about cutting costs. They are partnering with bank or card transaction companies to manage these programs.