Treasury to Deposit Some Tax Refunds on Prepaid Debit Cards

Treasury to Offer Tax Refunds on Prepaid Debit Cards
Treasury to Offer Tax Refunds on Prepaid Debit Cards

The U.S. Treasury is getting into the prepaid debit-card business, launching a pilot program targeting 600,000 taxpayers who receive tax refunds and inviting them to receive that money on a debit card instead of a paper check. To be sure, Uncle Sam is no relation to the Kardashians, who received a lot of scrutiny recently when they wandered into a PR disaster with their fee-laden offering pitched at the youngest and least savvy consumers out there.

In a statement, Treasury fiscal assistant secretary Dick Gregg says the department's goal is to keep Americans without bank accounts from paying exorbitant fees to check-cashing outlets and other unscrupulous businessses that operate outside the financial mainstream.