Why you might get your next stimulus payment on a debit card. What is an EIP payment

Stimulus check
Stimulus check

For payments authorized under the CARES Act, qualifying Americans were surprised to learn how they’d be receiving their stimulus payment check. Instead of through direct deposit or as a check in the mail — the money would come on an Economic Impact Payment, or EIP, card. EIP cards are debit cards you can spend like cash or transfer to your bank without a fee. About 4 million people received these cards starting in May.

Currently, Senate Republicans and House Democrats are in a weeks-long deadlocked disagreement over specifics in the next economic stimulus package. Despite bipartisan agreement over the need for a second stimulus check, many Americans are wondering when and if a second check is coming — and, if they got their first payment through an EIP card, will the second payment come the same way?

Here’s everything you need to know about EIP cards and whether you could get a second stimulus payment in this form in the coming months. 

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What is an EIP card?

An EIP card is a prepaid debit card that the Treasury Department has used to distribute stimulus payments under the CARES Act, instead of an electronic monetary transfer or paper checks. The cards were provided to some eligible US residents for whom the government did not have banking information. The Visa debit cards can be used to make purchases, get cash from in-network ATMs and transfer funds to your personal bank account without a fee. 

After the card arrived, you would head to the EIP card website to activate it and learn more about how to use it. 

Who is eligible for stimulus payments through an EIP card?

Those who were eligible received the first stimulus payment through an EIP card instead of a check if they filed their taxes, but the IRS did not have their bank account information on hand, and if the tax return was processed by IRS service centers in either Andover, Massachusetts, or Austin, Texas, according to a Treasury press release. It isn’t clear what the significance is of those particular service centers, but we’ve reached out to the Treasury for more information.   

If a second stimulus bill does get approved, you may get your payment the same way you did the first time around — so if you received an EIP card, you’ll probably get another one. It may be that if you do have new banking information to provide, you could receive your check a different way. 

How would my EIP card arrive? 

If you are eligible, your EIP card will arrive at the address listed on your last tax return in an unmarked envelope from “Money Network Cardholder Services.” Because it wasn’t clearly marked, some people reportedly threw the letter away without opening it during the first round of stimulus payments.

Payment cards are often sent in plain envelopes to deter fraud and thieves. It’s unclear if the IRS would send a second payment in an unmarked envelope too. 

How fast would I get an EIP card with a second stimulus payment?

If another coronavirus relief bill with a second stimulus payment is passed, it could likely take longer to get your EIP card than by direct deposit. When the CARES Act was passed in March, the first EIP cards didn’t start going out until mid-May. But it’s possible that it will be faster this time, since the infrastructure is already in place. We just don’t know yet. 

Once a second stimulus check is approved, you’ll be able to track your money (in whatever form it will take) using the Track My Payment tool from the IRS. (If you still haven’t gotten a first stimulus check, you can also track the status of your stimulus check, learn how to report your missing check to the IRS and find possible reasons why your stimulus check still hasn’t arrived.)

Can I avoid getting a second EIP card? 

If you have a bank account, you can try signing up for direct deposit with the IRS now through its Get My Payment portal. That way, if another stimulus package and check are passed, your bank account information will be on hand so you can likely get it by direct deposit instead of an EIP card. Direct deposit may not be available for everyone, but the portal did allow me to enter my bank information and sign up (I received my first check through the mail).

How much stimulus money could you get on an EIP card? 

Once a bill is passed, the amount of money you would get in a second stimulus payment (whether it comes through direct deposit, mailed check or EIP card) depends on your AGI, or adjusted gross income, from your tax filings, along with your filing status (single versus joint) and how many dependents you have. (Learn how to find your AGI on your taxes here.) The maximum amount a single taxpayer could get is $1,200. Find out how to calculate how much you could get on a second stimulus payment here. 

Getting your payment through an EIP card won’t change anything about the calculation or the amount you could get — just the form it will come in. 

Will I be notified if I was supposed to get an EIP card? 

With the first stimulus payments, the IRS sent a letter about your money to your last known address within 15 days after the payment was made. The letter included information on how you got the money (check or direct deposit or EIP card), and how to report if you did not receive the payment. But watch out: There have been a lot of stimulus check scams going around. Visit IRS.gov before giving anyone your information to make sure your letter is legitimate. 

What do I do if my EIP card is lost or destroyed?

Don’t worry: If you’ve lost or destroyed your EIP card, you can request a free replacement through MetaBank Customer Service. The replacement fee will be waived the first time. 

You don’t need to know your card number to request a replacement. Just call 800-240-8100, and choose the second option from the main menu, according to the IRS website. 

For more, find out if you’re qualified for a second stimulus check and when you can expect a second stimulus check.