The after effects of the recession epidemic are showing up one by one now. You might have rejoiced over the news that the recession was fading but the Labor Statistics Report saying that unemployment has hit an all time high within the last six years this August is sure to dampen your soaring spirits. To add to that the unemployment perks have become chargeable now. Here’s a CNN report on that.

Now, instead of issuing unemployment checks, many states are issuing prepaid debit cards to the unemployed. They want to save up on the printing and shipping costs involved with the unemployment checks. If you are unemployed you will be issued a prepaid debit card which you can use for availing your unemployment. The Labor Department reports that this is being adopted by 31 states. These cards may appear more convenient to you but the disadvantage is that they charge you fees for many of the services that they offer -for example, ATM withdrawals and many customer services. Even if you call up their customer services for enquiring about account balances you’ll have to pay a fee for that. This appears pointless to me because when you are unemployed you’re already cringed under financial pressures. What’s the point in charging money from those who are already hard pressed for money ? Why offer such services at all?

The consumer protection also seems to be far fragile in comparison to what is offered by the conventional credit and debit cards.

The Labor Department has already voiced its concern over the issue and had suggested some measures in favor of the unemployed. Firstly, it requested the states to grant a direct deposit facility to the unemployed with active bank accounts instead of dealing through unemployment cards which are chargeable. The unemployed should be made aware of the fees they have to pay beforehand and the fee schemes should be designed keeping in mind the welfare and convenience of the unemployed.

The federal laws that cover the conventional credit and debit cards don’t seem to cover the unemployment debit cards. So, in such a case you should be able to know what protection that you actually get for these cards. Visit your card issuing authority and ask them to clearly tell you what protection they are giving you. This is the way you can use your card wisely. Don’t assume that your unemployment debit card is given the same facilities as the conventional credit/debit cards. For example, if you happen to purchase a defective item with your credit card, you are given a reimbursement but the same facility may not be available for you with your unemployment debit card. If you make a purchase assuming that you’ll be given protection as under the credit card you’ll be blundering.

Don’t delay reporting any card loss by more than a couple of days. The longer you wait the higher will be the reimbursement charges. After a specific period of time, you might not get a new card at all.

How Do You Avoid ATM Charges

Many unemployment cards give you the facility to make a free ATM withdrawal just once. To avoid ATM fees on further transactions you can visit the teller counter of the bank. Apart from that you can also go for bank transfers but that is also chargeable like in the case of Missouri Access Mastercard. Another clever thing that you can do is to withdraw the entire amount you’d want to in your single free transaction, but I think that is not feasible because you simply can’t want all your money all at once.

While going for a deal, be sure that you have enough money in your account otherwise you’ll be charged fee for insufficient balance. Check your balance online and get electronic transfers done as printed statements and physical transfers are chargeable.

These are some ways you can cut down on the costs that you’ll have to incur for using an unemployment debit card. Most importantly, find yourself a good job soon because the fading recession seems to be opening some new avenues.