Cave said in an email that "Fiserv has no intention to become a traditional financial institution or regional bank. Fiserv typically uses bank partners for payment processing. ![]() The department spokesperson said the state is expected to begin offering direct deposit this spring through Money Network.Įarlier this month, Fiserv applied for a merchant acquirer limited-purpose bank charter in Georgia that would allow the technology giant to authorize, clear and settle debit and credit card transactions. In 2020, California's state auditor issued a scathing report that said the department had mailed 40 million letters with beneficiaries' Society Security numbers on them and then struggled to fix the problem, putting millions at risk of identity theft. Many states' prepaid debit card programs were targeted by criminals during the pandemic, when members of organized crime rings and prison inmates applied for and obtained billions in jobless and disability benefits they were not entitled to collect. The department has been plagued for years by antiquated technology that made it unable to provide direct deposit to beneficiaries, which increased the risk of fraud due to prepaid cards being sent in the mail. "Through Money Network, EDD customers will have access to secure chip cards and tap-to-pay technology to help protect EDD customers against fraud and skimming attacks." "Fiserv has the resources and secure systems we need to support the large number of customers who rely on EDD benefit programs, especially during periods of high demand in economic downturns," the department spokesperson said in an email. The department heaped praise on its new partner. A department spokesperson said that as BofA's contract was ending, the agency picked Money Network in a competitive procurement process. But the state agency had the option to extend BofA's contract for two years, which it did in 2021 and again in 2023. The bank had tried, unsuccessfully, to exit its contract with the Employment Development Department in mid-2021 due to financial risks. Bank to pay $36 million for violations related to its prepaid card program to distribute unemployment benefits during the pandemic.īofA had held the contract to administer California benefits since 2010. ![]() ![]() In 2022, BofA was fined $225 million by federal regulators over allegations that it unlawfully froze consumer accounts in California, and for engaging in "unsafe or unsound practices" in distributing unemployment, disability and pandemic-relief benefits to consumers in 12 states. App Store is a service mark of Apple Inc.Bank of America's prepaid debit cards will remain active until April 15, which will mark the end of the $3.2 trillion-asset Charlotte, North Carolina, bank's involvement in distributing government unemployment benefits.īofA faced financial and reputational risks in managing prepaid debit cards, which were heavy fraud targets during the pandemic. Apple, the Apple logo, iPhone, and iPad are trademarks of Apple Inc., registered in the U.S. Google Play and the Google Play logo are trademarks of Google LLC.The Money Network Card is accepted everywhere Visa debit cards are accepted. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. ![]() Inc and by Mastercard International Incorporated. Money Network Checks and Money Network Cards are issued by Pathward ®, N.A., Member FDIC, pursuant to a license from Visa U.S.A. The Card account is FDIC insured and follows all Regulation E requirements for consumer. All trademarks, service marks and trade names referenced in this material are the property of their respective owners. A Money Network Prepaid Visa® Card allows direct deposit of unemployment benefits payments to those who do not have a traditional bank account or who do not want their payment deposited into their existing bank account. To see the features available to you, please log in to the Money Network Mobile App and view your navigation menu, or log into your Account online and view your dashboard.
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