Nineteen states in the U.S.A. use a system called Eppicard to distribute payments. Eppicard users in many states have recently been falling victim to scams. Is using an Eppicard to distribute benefits a good idea?
How Eppicard is used
States contract with the private company that runs Eppicard . 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
Emails and text messages in Ohio have been targeting Eppicard users, trying to get them to provide their Eppicard information to scammers. 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.
Should Eppicards be used for benefits?
The Eppicard system is, in general, a contractor for state benefits. Eppicards can be much simpler to use than checks, because they look and act just like a debit card. Some Eppicard users claim that the practices of the company seem more like a Rush Card than a state “service”. ATM transactions with the Eppicard can cost as much as $ 1 each. Customers are also charged if they call Eppicard customer service. The company also charges fees to replace a card, for every time they deny a transaction, for any overdraft transactions, and even to inquire about your balance. Are citizens really served by a company that charges state benefit recipients to access the money that is rightfully theirs?. Most states, though, do provide some kind of alternative to the Eppicard.
