As if losing a job and having to rely on unemployment benefits isn’t enough, it appears that a number of unemployed individuals are seeing their benefits reduced by fees associated with their debit cards.

When an individual files for unemployment in most states, they are given a choice between receiving a check in the mail, which can take up to two weeks, and receiving a debit card loaded with their first installment of funds immediately. These debit card programs are being supported by some of the nation’s largest banks, many of which are only able to operate because of billions of taxpayer dollars in bailout money. The fact that these taxpayer-supported banks are collecting fees from unemployed Americans who are receiving taxpayer-funded benefits is receiving a great deal of outcry from the public.

The fees aren’t necessarily large in amount, but they are assessed on many services associated with the debit cards. Unemployed workers in some states report fees including $1.50 for each withdrawal from an ATM machine, 40 cents for a balance inquiry, 50 cents if your debit card is denied, and many others. By the time the fees are all added up, they can make up a meaningful amount of money to someone who is barely getting by on unemployment benefits.

Officials in charge of administering unemployment benefit programs in some states are beginning to respond to some of the criticism associated with the debit card fees. They are quick to point out that using debit cards has made the distribution of funds much more efficient, but they also admit that they need to work harder to minimize fees charged by banks on the cards.

The idea of using debit cards has been helpful for unemployed workers in many ways. Check cashing fees are eliminated, and because they can be used at just about any business in this country, they are generally more secure than carrying cash. With improving technology, the debit card system should be used even more frequently. However, the fees associated with these cards will continue to be a sore subject for unemployed Americans until the system is improved.

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Tags: banks, checking cash, Debit Cards, fees, unemployment

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