Not junk mail: As Covid relief bill passes, many will receive MetaBank-issued cards

While the bulk of stimulus payment cards are going out through direct deposit, a significant number will be sent via MetaBank-issued prepaid cards. Prepaid cards are easy to use and are aimed at underserved consumers, but they present some challenges.

Why should we care?
The Department of the Treasury didn’t say how many cards will go out this time, but prepaid cards are aimed at millions of unbanked and underbanked populations. Of course, many payments will also be sent as paper checks. For MetaBank, a top prepaid card issuer, the program is a component of its banking-as-a-service strategy, and reinforces its focus on underserved customers. “We feel that it’s important for us to do our part to try and help the government, and help consumers in a time of great need,” Brad Hanson, MetaBank’s CEO and co-president, said in a recent interview. A challenge from previous stimulus payment rollouts is that many consumers throw the card envelopes out, thinking they are scams. Since the first stimulus card rollout, the government added design elements to the card envelopes to reinforce their importance. In the event that cards were thrown away by mistake, the Department of the Treasury (working with MetaBank and Fiserv) set up a hotline and website to assist consumers with replacements. The Department is also doing public outreach in regions of the country where a high number of the stimulus debit cards were mailed.