There are currently 19 U.S. states that use Eppicard to process and distribute state payments. Eppicard users in many states have recently been falling victim to scams. Is using an Eppicard to distribute benefits a good idea?
The use of an Eppicard
Eppicard is a system run by a private company that provides contract services to states. In 19 states, Eppicards are used to provide child support, unemployment and state benefit payments. When a customer uses an Eppicard at an ATM or store, it works much like many other debit cards.
Eppicard scams are increasing in frequency
In Ohio, many Eppicard users are being targeted by e-mail and text message phishing scams. Most of these messages ask someone to “update their Eppicard information”. The Eppicard users are told that they need to update their information in order to get a personal loan or continue accessing their account. If Eppicard customers use the fake link or text message to “update” information, the scam artist empties their accounts. The company, state governments, and the FBI have all warned that it is important to only trust the official website for information on your Eppicard.
Eppicard for benefits not a good idea?
The company that operates Eppicard is a contractor. Eppicards can be much simpler to use than checks, because they look and act just like a debit card. There are just about as many complaints about the Eppicard as there are about the Rush Card. It can cost as much as $ 1 to put through an ATM transaction. Calling Eppicard customer service also creates an additional charge. Card replacement, denial of funds, overdraft fees and even balance inquiries end up with charges. While the Eppicard may be simple for states to use, there are concerns that the additional charges are taking advantage of people receiving state benefits. Most states, though, provide an alternative to the Eppicard, such as paper checks or direct-deposit systems.
