On July 8, Californias Employment Development Department (EDD) began distributing EDD debit cards to replace the unemployment checks for 1.2 million Californians currently receiving unemployment benefits.
The EDD already uses the Visa-branded debit card, issued by Bank of America, to deliver state disability insurance and paid family leave benefits to recipients.
The EDD debit card allows customers to transfer some or all of their benefits to their own checking or savings account by performing a direct deposit transfer once they receive the card. The card is valid for three years from the date of issue and can be used everywhere Visa? debit cards are accepted.
EDD is transitioning to debit cards to cut costs, and because the cards are a quicker, safer and easier method for customers to receive benefits. Other customer benefits may include:
If a person does not use the cards properly, he/she could be charged fees by the card issuer. For example, fees may apply after you exceed the number of free transactions at non-Bank of America ATMs. A schedule of bank fees will be included with the card.
EDD is phasing in the use of the cards and started on July 8 to distribute 10,000 cards per day to unemployment claimants. Claimants will receive a notification letter shortly before their new card arrives.
EDD has been reaching out to educate those transitioning the new debit card through mailing inserts sent along with current unemployment checks. The inserts contain instructions on activating the card and avoiding fees. Information, including an instructional YouTube video, can also be found on this EDD website.
Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel
The EDD already uses the Visa-branded debit card, issued by Bank of America, to deliver state disability insurance and paid family leave benefits to recipients.
The EDD debit card allows customers to transfer some or all of their benefits to their own checking or savings account by performing a direct deposit transfer once they receive the card. The card is valid for three years from the date of issue and can be used everywhere Visa? debit cards are accepted.
EDD is transitioning to debit cards to cut costs, and because the cards are a quicker, safer and easier method for customers to receive benefits. Other customer benefits may include:
- No more waiting for checks in the mail
- No more check cashing fees for those who do not have personal bank accounts
- Access to cash at ATMs, point of sale terminals and at Visa banks and credit unions
- The ability to use the card to pay bills
If a person does not use the cards properly, he/she could be charged fees by the card issuer. For example, fees may apply after you exceed the number of free transactions at non-Bank of America ATMs. A schedule of bank fees will be included with the card.
EDD is phasing in the use of the cards and started on July 8 to distribute 10,000 cards per day to unemployment claimants. Claimants will receive a notification letter shortly before their new card arrives.
EDD has been reaching out to educate those transitioning the new debit card through mailing inserts sent along with current unemployment checks. The inserts contain instructions on activating the card and avoiding fees. Information, including an instructional YouTube video, can also be found on this EDD website.
Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel