The US Department of the Treasury’s Financial Management Service (FMS) has renewed its designation of JPMorgan as its financial agent to support FMS’s US Debit Card program, which provides prepaid debit card services to federal agencies. The three year award is part of the Treasury Department’s strategic plan to reduce the number of paper checks issued by the federal government.
Two types of debit cards will be offered: single deposit cards and multiple deposit cards. Single deposit cards can be used by agencies to pay a cardholder an incentive, bonus, one-time stipend, per diem or other similar one-time payment type. Multiple deposit cards can be used by agencies to make multiple payments to a debit card for emergencies, stipends, payroll, certain types of benefits or other similar recurring payment types.
Both types of cards can be used at point-of-sale for purchases or at ATMs to withdraw cash. Cardholders also will have the ability to pay bills via a secure website or to transfer money from the card to another account via an interactive voice response (IVR) system. For cards with cardholder owned funds, these funds will be insured through the FDIC and comply with all Regulation E provisions.
“We are pleased to continue our partnership with FMS on the US Debit Card program,” says Laurie Neill, managing director of Public Sector Solutions for JPMorgan, “Debit cards will further help US Treasury increase electronic payments issued by the federal government and yield significant savings to taxpayers.”
D.C.