The Child Support Enforcement Division will begin today issuing child support payments through a new payment option via a U.S. Bank-issued prepaid debit card called the ReliaCard Visa. 

The CSED of the Department of Public Health and Human Services is switching to the ReliaCard Visa from the Montana Access Card, a debit card that’s also been used to distribute child support payments since 2003.

About 11,000 people now using the Montana Access Card for child support payments will soon be switched to the ReliaCard once their next payment is received. On average, Montana CSED has about 39,000 open child support cases, with most receiving child support payments via direct deposit.

Governor Brian Schweitzer said the switch to the ReliaCard Visa saves an estimated $200,000 per year because the state is not charged a fee for this service. “Considering the difficult economic conditions we’re facing, the timing couldn’t be better for child support enforcement to make this transition,” Governor Schweitzer said.

Here’s how it works. CSED will electronically load child support payments into the cardholder’s ReliaCard account whenever payments are received. There is no monthly fee for ReliaCard, and cardholders can use their card to make purchases anywhere Visa debit cards are accepted and can withdraw cash at any Visa/Plus ATM.

In addition, people will receive a monthly statement listing their transactions and current balance. “I think people will really like that feature since that’s something we haven’t been able to offer before,” said DPHHS Director Anna Whiting Sorrell.

The ReliaCard requires no credit approval, bank account or previous banking relationship and are issued free of charge by U.S. Bank directly to the individual.

However, some fees do apply and people need to read and understand the list of potential fees. ATM withdrawals are free in network, but there is a $1.25 charge for out-of-network ATM withdrawals. There is no fee when getting cash back with a purchase at participating businesses. “In terms of fees, this card is very user-friendly,” Whiting Sorrell said. “If folks are careful, they should be able to use the card and not accrue any fees at all.”

Detailed information prepared by U.S. Bank will be sent out to those who receive child support payments once the cards have been issued. The information includes how to activate and use the ReliaCard, how to access customer service, frequently asked questions and a fee schedule.

For those who do not want to be issued a ReliaCard, direct deposit is still being offered as an alternate method of having child support payments deposited into a bank account. “Providing both debit card and direct deposit options will allow people to receive their money faster, safer and more efficiently,” Whiting Sorrell said.

Other DPHHS programs that use the Montana Access Card to distribute benefits will not be affected by CSED switching to the ReliaCard. The Supplemental Nutrition Assistance Program (SNAP) benefits and cash assistance for the Temporary Assistance for Needy Families (TANF) program will continue to use the Montana Access Card.

Since 2001, the U.S. Bank has partnered with 24 agencies across 13 states to provide payments on the ReliaCard Visa.

For additional information regarding Montana child support, visit www.childsupport.mt.gov or contact Olson at 406-444-3338.

For more information about the ReliaCard go to www.reliacard.com.