ReliaCards users to receive free and unlimited point-of-sale, bank teller and U.S. Bank ATM transactions

New fee structure reached as part of negotiations for state’s electronic payment card contract

State Treasurer Ted Wheeler and U.S. Bank have agreed to make point-of-sale, bank teller and U.S. Bank ATM transactions free and unlimited for Oregonians who receive unemployment and child support payments via state-issued ReliaCards.

The new terms were reached as part of ongoing negotiations over the state’s electronic payment card services, which have yet to be finalized. A full fee schedule will be available after the contract is final. The current contract is set to expire Dec. 31.

“The changes we have negotiated will benefit Oregon card users and taxpayers,” said Treasurer Wheeler. “I want to thank U.S. Bank for listening to the needs of Oregonians and for their commitment to making the program even better for all involved.”

“U.S. Bank has provided banking and financial services to Oregonians for more than 120 years and continues to be an advocate for a stronger community,” said Malia Wasson, president of U.S. Bank in Oregon and Southwest Washington. “We are pleased to be able to restructure our ReliaCard program so that it meets the needs of the State of Oregon and our shared constituents and clients.”

Oregon began providing payments through electronic payment cards in 2007 for unemployment and child support recipients. About half of the Oregonians who receive payments choose to have the money directly deposited for free to their bank accounts. Those who do not choose the free direct deposit option can have payments posted for free to any reloadable prepaid card, including U.S. Bank ReliaCard.

Under the revamped fee schedule, cardholders will:

· have free and unlimited withdrawals from US Bank-branded ATMs. That is a significant improvement from the current contract, which allows cardholders two free ATM visits a month;

· be allowed unlimited cash withdrawals from bank branch teller windows (over-the-counter cash withdrawals);

· continue to make point-of-sale purchases and receive cash back with no charge, like any debit card, at any merchant that accepts VISA-branded debit cards;

· continue to have two withdrawals a month from non-U.S. Bank-branded ATMs, without U.S. Bank charges. That is a unique benefit in Oregon’s contract that was negotiated because of the understanding that not all Oregonians live near a U.S. Bank branch; and

· no longer have access to overdraft protection as federal law changes make this option unavailable.

Before the advent the electronic payment card program, the state printed, mailed and processed hundreds of thousands of additional checks each month. As a result, costs to taxpayers were significantly higher. Between 2007 and December 2010, the accumulated savings as a result of just the Employment Department shift was estimated to be at least $11.5 million.
photo courtesy of ouroregon.org