MINNEAPOLIS, Apr 4, 2003 (BUSINESS WIRE) -- U.S. Bank and the State of
Minnesota are introducing an innovative payment program that allows the state to
disburse child support payments on a plastic card versus a paper check. The
program became available statewide in late February and parents will soon start
receiving information from the Minnesota Department of Human Services about the
stored value card, along with other direct deposit options.
The Minnesota ReliaCard functions like a debit card though it is not attached to
a checking or savings account. It offers another electronic option to parents
who do not have their child support deposited to a checking or savings account.
With the ReliaCard the state continues to collect court ordered payments, but
instead of mailing a check to the family, it electronically loads the payment on
to the ReliaCard that a parent can use to make purchases or withdraw cash. The
card carries the Visa(R) logo and is accepted anywhere Visa is accepted.
The program is among the first of its kind in the United States. It is expected
to reduce costs for the state, which will no longer have to produce and mail a
check or incur other associated costs. The card also brings convenience and
safety to cardholders who no longer have to find the time and place to cash
their checks and pay check cashing fees.
"The ReliaCard will cut costs for the state and will make receiving child
support payments faster and more convenient for families," said Wayland
Campbell, director of the Child Support Enforcement Division at the Minnesota
Department of Human Services.
The state issues more than 180,000 checks each month, collecting and
distributing about $46 million in child support payments.
"The stored value card is a good option for families that do not have a bank
account," said Campbell. "Families may want to keep their child support payments
separate from other money." Parents can track how they spend the funds through
monthly statements or a 24-hour customer service via the Internet or telephone.
Approximately 3,000 people signed up to use the card during a pilot and the
number continues to grow now that the card is available statewide. Campbell said
the state is pleased with the results so far.
The card is available free of charge, with the exception of when funds are
withdrawn from an ATM, in which case there is a $1.50 fee. If the card is lost
or stolen, it is backed by Visa's zero liability policy, which means the
cardholder is not responsible for unauthorized purchases.
U.S. Bank implemented similar programs in Colorado and Washington and is working
with other government agencies to initiate stored value payment cards in more
states and in various capacities.
U.S. Bancorp (NYSE:USB), with assets in excess of $180 billion, is the 8th
largest financial services holding company in the United States. The company
operates 2,142 banking offices and 4,604 ATMs, and provides a comprehensive line
of banking, brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. U.S. Bancorp is
home of the Five Star Service Guarantee which assures customers of certain key
banking benefits and services or customers will be paid for their inconvenience.
U.S. Bancorp is the parent company of U.S. Bank. Visit U.S. Bancorp on the web
CONTACT: U.S. Bank
Teri Charest, 612/303-0732
Minnesota Department of Human Services
Karen Smigielski, 651/296-1258
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SOURCE: U.S. Bank