You may be sent next $1,200 stimulus payment on a debit card if deal reached

AMERICANS who are eligible to receive the next round of $1,200 stimulus checks may once again receive their payments on a prepaid debit card.

In the first round of stimulus checks made under the CARES Act, Americans hurt by the economic impacts of the coronavirus pandemic received 140 million Economic Impact Payments worth $239 billion, according to a press release from the Treasury Department.

But almost 4 million people were shocked and confused when they received theirs on a card instead of a paper check or direct deposit.

The EIP cards were sent through the mail in plain envelopes noting “Money Network Cardholder Services” and the Treasury’s financial agent, MetaBank.

But people suspected the unsolicited mail was spam or junk, throwing away their cards, CNBC reported.

In a blog post from the Consumer Financial Protection Bureau, the agency wrote: “Do not throw this card away. You will need this card to access your Economic Impact Payment.”

The blog post also provided instructions on how to activate and use the Visa cards.

EIP cards were sent to people who had filed their taxes but had not provided the IRS with their bank account information, and their tax returns were processed at IRS service centers in either Andover, Massachusetts or Austin, Texas.

By providing the IRS with your banking information, you may be able to receive any future stimulus checks much faster by direct deposit than by the prepaid debit cards – if a deal is reached providing another round of stimulus checks.

Democrat Maxine Waters, Chairwoman of the House Financial Services Committee, called on the Fed to increase prompt payments in response to COVID-19 and has proposed a digital wallet system that would allow recipients to receive their stimulus checks electronically.

Earlier this week, it was announced that the IRS would be sending out about 50,000 “catch up” stimulus checks to those who did not receive them yet.

Lawmakers have stalled on reaching a new coronavirus relief package, leaving a second round of stimulus checks uncertain.

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