Why Some People Are Receiving Their Stimulus Checks via Debit Card, and How to Use Them

Most Americans are receiving their much-awaited stimulus checks, also known as "economic impact payments", via mail and direct deposit, but there's actually one other way the money is arriving in people's hands: debit cards.

The Economic Impact Payment cards are going out to certain eligible taxpayers for whom the IRS does not have bank account information. The cards are sent to the last address on file with the IRS.  About 4 million people have received payments this way. You can't request your payment to come on a debit card--the IRS will just distribute it to you that way if you're eligible.

What the Debit Cards Look Like

Some people have confused the debit cards with scams and actually cut them up. The envelope that they arrive in does not say "Internal Revenue Service" on the return label, but rather "Money Network Cardholder Services". Inside, there will be a visa debit card issued from Metabank, N.A.  It will also come with instructions about how to activate and use the card. Although it might seem scammy, this really is your stimulus payment! And is yours to spend as you see fit, as long as you are careful to avoid a few pitfalls that come with fees.

How to Use the EIP Card

You can use the card the same way you would use any other Visa. You can shop online with it or at retail locations that take Visa, take money out from ATMS that are in network, and even transfer the funds to your own bank account.  If your landlord accepts Visa payments, you can use the card to pay rent.  You should even be able to use the card for peer to peer payment apps like Paypal or Venmo.

You can check the card's balance or activate it online or via mobile here, or call 800-240-8100. You will need your address and social security number to activate.

How to Avoid Fees

One of the frustrating things about the EIP cards is that there are certain fees that you can incur by using the card incorrectly.  

If you use the card at an out-of-network ATM more than once, you will be fined $2, so it's worth checking the locator for in-network ones here. You need ATMs that carry the Allpoint brand.If your card becomes lost or damaged, you will be charged $7.50 for a new one. Withdrawing cash internationally comes with a $3.00 fee, and withdrawing cash over the counter at a bank more than once (rather than using an ATM) has a fee of $5.00.

Privacy and The EIP Card

Some people who have received the EIP cards have been concerned that the government might be able to see how they spend the money or even withdraw funds from the account. But under the Financial Right to Privacy Act, the government does not have the right to ask the card issuer about the balance of your card or what you've spent it on, and the card issuer is not allowed to volunteer that information. Your card is yours alone, and you can spend it on whatever you like.