IRS to issue stimulus payments on prepaid debit card

Since mid-April, approximately 140 million Americans have received direct payments from the IRS totaling around $239 billion.

Most of these payments were sent out via direct deposit and landed in individuals’ bank accounts that were on file but some also have been sent out via paper check.

But there are still about 10 million Americans who qualify for direct payments that have not received them. 

Well, about 40% of these people will receive their payments very soon via Visa debit cards that will be issued by MetaBank.

Eligible individuals

Basically, the individuals who will receive these cards are those without bank information on file and who processed their tax returns with certain organizations.

“EIP Cards are being distributed to qualified individuals without bank information on file with the IRS, and whose tax return was processed by either the Andover or Austin IRS Service Center,” the Treasury statement said.

The debit cards will be sent from Money Network Cardholder Services, and will come with instructions on how to activate the card. The debit cards can be used to withdraw cash from an ATM, transfer funds over to a bank account, or make purchases just like any other card with the Visa logo on it.

Those who receive the debit card will be able to check their balance and obtain online access to their transaction history at

A more efficient solution for many Americans

I have to give props to the IRS when they are due (which can be really tough sometimes).

But in this case, many people who do not have bank accounts or “the under-banked” as they are often called are also some of the people in the most financial need. So creating a mechanism allowing them to receive their funds and use them efficiently is a good move.

Some establishments have offered to allow those individuals to cash stimulus checks for free but now they will also have the ability to use ATMs, make account transfers, and also keep tabs on their transaction history.

Perhaps it will convince many of those people to eventually open up bank accounts in the future?

A new way of sending funds to Americans in the future?

Meanwhile, this could potentially be a new route to receive funds from the government in the future.

Some lawmakers have proposed that the federal government should set up federal accounts for everybody and use those accounts as a way to get them funds in times of need.

I like the idea of every American having an account that can have funds directly injected into it for various purposes but it may not be necessary (for now) given that after a bumpy start, it looks like the direct deposit feature from the IRS was mostly figured out.

But there are a lot of people who could probably benefit more from receiving a pre-loaded debit card rather than a check.

This is just my pure speculation, but I think being forced to cash that check in one transaction carries with it psychological impulses to spend more than receiving a debit card.

Although using plastic cards does make people spend slightly more in the long term, I think walking out of a business establishment with $1,200+ in cash in your hands has sort of a “jackpot” feeling for some people that could encourage them to spend it quicker.

Either way, it’s good to see the IRS doing something to make receiving and using stimulus funds more efficient.

I wonder if they will consider allowing people to sign up for this option if a second round of stimulus checks is approved?

If these debit cards can be processed quicker than paper checks, this option could help millions of people get the aid they need much quicker.




  1. Hi my name is Christina modlin. And I have not received my 1200 yet, I’m on ssi and ssdi and social security retirement fund. Everything goes to my direct deposit.

    1. My name is Mary booth I am on SSI I have a bank account for years now if all the info that as gave to the IRS my burning question remains is all SSI and rrretirees have direct deposit whats the hold up and why are we supposed to be getting the cards which is supposed to be faster I really don’t see how or understand there way of thinking Mary b in Georgia

  2. I was suppose to receive the additional credit for a child but I didn’t. How can this be corrected.

    1. I’ve received a lot of comments about this but I’m not sure what the solution is. You are not alone though.

      1. Hi my name is Zinnia Aguirre . And I haven’t received my stimulus check yet. And I check my status on “get my payment” it’s say “payment status or file status not available.

  3. I have not received my stimulus check or my personal refund. I have direct deposit and have yet to receive either.

  4. Better process, but hate the thought I’d more plastic in landfills. They need a recycle system for all gift cards.
    What about the people that filed taxes, but owed. System still isn’t letting you add bank info. to the site.

  5. Hi my name is Zinnia Aguirre . And I haven’t received my stimulus check yet.

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