As of September 2007, Wisconsin residents who receive child support have only two options regarding how they will receive their payments: through direct deposit or a Chase Bank Visa debit card.
The State of Wisconsin has chosen to eliminate paper checks for those receiving child support. If you do not have direct deposit set up at a bank, a Visa debit card will be mailed to your home. In September, these cards were rolled out in St. Croix and Jefferson counties. Wisconsin expects to have all cards mailed out with a 6 month period.
Visa debit cards can be used to purchase merchandise or services wherever Visa is accepted, at automatic teller stations (there will be a fee if not using a Chase Bank ATM). A check can also be cut for a charge at any Chase Bank for the funds on the card. With this card shopping online is also possible.
The pros to issuing the card instead of paper checks are in favor of the payee:
Less wait for child support, since the card should be credited within two days payment is received at the Child Support office.
There will be going to a bank and standing in line to deposit or cash the check.
Many people who do not have bank accounts rely on check cashing place in order to cash the check. These places charge hefty fees, so more of your support money is in your pocket. A monthly statement will be mailed to show the balance on the card.
No more checks lost or stolen and having to be reported missing.
The State of Wisconsin does not list any cons to this program outright, a few to consider:
If you do not understand how check cards or debit cards work, this could be an experience for you.
Also you will need to remember how much money is left on the card each month. This can be verified by using the balance inquiry at a Chase ATM or by calling a toll free number. There is also an online account that can be set up for the debit card. More steps than some are willing to go through.
A pin will need to be established to use the card at an ATM. Many people do not use ATMs or may not have a Chase ATM in the area.
If you need money to pay where Visa is not accepted then you will have to purchase a money order or go to Chase bank and have a check cut (for a fee of $12.50).
A lost card could spell disaster for a family. If not reported right away, the thief can use up the money, since most merchants do not check a signature.
The Visa card in general promotes spending the money, instead of saving it.
For Wisconsin issuing child support payments is completely electronic now. All payments will be going to either direct deposit or the Visa debit program. As people receive the cards more and more people will turn to direct deposit . It is much easier and safer than even a Visa debit card. For those people who do not have a bank account they will have no choice in how they receive payments. More information can be obtained at: www.dwd.state.wi.us/bcs/card_faq.htm#10
