We previously took a detailed look at how to claim the $1,200 stimulus payment. Now, the U.S. Treasury has announced that some payments will be issued in the form of a Prepaid Debit Card. A Prepaid Debit Card is essentially a one-time-use debit card that you can use directly in stores or online like a credit card, without entering a PIN. Of course, unlike a typical credit card, this card can also be run through the debit network to buy certain cash equivalents such as Money orders, in which case you would need to enter the PIN. The Prepaid Debit Card can also be used to pay taxes online through the debit network, where the processing fee is slightly lower than for a credit card.
Issuing a Prepaid Debit Card is actually a pretty good idea. Many Americans do not have bank accounts and cannot directly deposit or cash a check, so they have to go to places like Walmart to cash it out. Sending a card directly makes the funds immediately usable, which is a fairly thoughtful approach.
