Unemployment debit cards take over checks

DENVER -- The Colorado Department of Labor and Employment has partnered with Chase Bank to change the way benefit payments are issued by the state's Unemployment Insurance program.

Since its inception in 1935, benefits have been paid by check every two weeks, a process that has been costly and time consuming, according to a prepared release. That has been replaced by a Visa debit card issued to recipients called the Colorado Automated Payment Card. Benefits automatically will be deposited into recipients' CAP Card accounts.

The CAP Card may be used for purchases anywhere Visa is accepted. The Unemployment Insurance Program completed a trial period and is launching the new way of providing benefits to those who have lost a job through no fault of their own, the release stated.

Officials say the new system provides greater security, privacy and reliability to the unemployment insurance payment system.

The costs associated with warehousing check stock, printing checks and bank-processing fees will be eliminated with the issuance of the card, cutting costs significantly. First-year savings on postage costs are estimated at more than $209,000, the release stated.