Some States Turning to Debit Cards for Refunds To Taxpayers Who Do Not Have Banking Accounts

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State revenue departments are beginning to issue refunds in the form of debit cards, rather than paper checks, for taxpayers that do not have bank accounts. In addition to the “customer service” benefit of making the refund money available to taxpayers without incurring check-cashing fees, state officials also cite security features built into the activation process as an advantage of using the cards.