Published Articles
Update on Efforts of Streamlining Government Payments
In a previous post, we discussed the government’s efforts, via reloadable open loop payments, of streamlining its ability to disburse the billions of dollars in payments it makes for any number of reasons on a monthly basis. The goal is to reduce the tons of paper it uses to mail traditional paper checks by replacing its procedures with reloadable debit cards. As we know, it’s very cost efficient and works for the millions of Americans who receive government payments but do not have a bank account.
Now, Florida has announced it too will be offering a prepaid debit card program for its residents who receive unemployment benefits. It will continue to offer recipients the option of traditional paper checks or electronic funds transfers, also known as EFTs, but the state will also offer these convenient reloadable cards. This will benefit not only those who use the cards, but for merchants, it works seamlessly with all credit card processing services, including those typically found at gas stations and grocery stores.
It appears as though the state will incorporate a Visa branded card that can be used anywhere Visa is accepted as well as close to 2,000 in-network ATMs in Florida. Officials cite the convenience those “unbanked” residents will now enjoy. One 2009 report says more than 525,000 residents in Florida do not have access to a traditional bank account. This equates to just under 7% of the state’s adult population.
Processing credit card transactions will be a big plus not only for those who opt to use this method, but also for Florida 
merchants, as well. Is it time to take a new look at your merchant credit card processing suite? If so, FDIS can provide all of the information you need so that you can make the best decision for your unique business model. Browse our package offerings or give us a call at 877-550-8671.
