The Treasury Department announced on Thursday the launch of a pilot program, in which 600,000 tax payers with income of less than $35,000 will have the option of activating a MyAccountCard Visa Prepaid Debit Card, on which their 2010 federal tax refund would be direct deposited.
Deputy Secretary of the Treasury, Neal Wolin said "This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund", whilst also relieving the Treasury Department of the high overhead associated with mailing traditional paper check refunds.
It costs the government around a dollar each time it mails a paper check, and in comparison, direct deposit to a card will only cost the government 10 cents per transaction. It is expected that the Government can reduce the cost of mailing paper checks by up to $36 Million once the program is fully implemented.
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