Coronavirus Stimulus: New Relief Payments To Be Sent Via More 'Secure' Prepaid Debit Card

Despite the prevalent debit card fraud in the United States, the Treasury Department has gone ahead with its plan to mail debit cards as coronavirus relief payments to almost four million taxpayers reeling from lost jobs due to the COVID-19 pandemic.

MetaBank, Treasury Department's financial agent, will start mailing the debit cards this week. The department said the mailings will include instructions on how to activate and use the cards.

Americans who receive the debit cards can use them online, at ATMs and at retail stores that accept Visa cards. They'll be able to use the cards to make purchases and get cash from in-network ATMs without incurring fees. Users can also check the card balance online or on their mobile phones without incurring fees, said the Treasury Department.

"Prepaid debit cards are secure, easy to use, and allow us to deliver Americans their money quickly,” claimed Treasury secretary Steve Mnuchin. “Recipients can immediately activate and use the cards safely," he said Monday.

A few weeks ago, Mnuchin said the Treasury Department intended to get some Americans their coronavirus relief payments by sending them debit cards. This move is part of an ongoing effort to help people get their payments faster.

“Treasury and the IRS have been working with unprecedented speed to issue Economic Impact Payments to American families," said Mnuchin. "Prepaid debit cards are secure, easy to use, and allow us to deliver Americans their money quickly. Recipients can immediately activate and use the cards safely.”

On Monday, the department revealed it has already delivered more than 140 million coronavirus relief payments worth more than $239 billion. The first tranche of payments was sent via direct deposit. The Treasury Department then started issuing paper checks to people who haven't provided the IRS with their bank account information.

House Democrats introduced another stimulus bill called HEROES 2 last week that included provisions for additional $1,200 stimulus payments. The legislation passed the Democratic-controlled chamber on Friday, but has little support from House and Senate Republicans.

However, it remains to be seen whether sending debit cards is a safe option, with experts warning these cards are easy prey for rip-off artists.