Louisiana Ends Tax Refunds on Prepaid Debit Cards
As of last week, taxpayers in Louisiana can no longer receive their tax refunds on prepaid debit cards. Refunds will still be available through check and direct deposit, but the prepaid program, known as Louisiana MyRefund Prepaid Debit Cards, is officially over.
JP Morgan Chase, the financial institution backing the prepaid cards, announced last year it would be slowly pulling out of the prepaid industry. Louisiana uses Chase Liquid cards to issue tax refund money, but it will not have the option to do that due to the changes at Chase.
Cardholders who still have money on their prepaid tax cards will be able to use the cards until the funds are spent. However, they will not be able to add new funds to the card or get future refunds after the money has been spent in the account. Any requests for prepaid cards sent after October 2 will default to checks instead, sent by mail to the address on file.
The loss of the prepaid program may not be as devastating as it seems. When Louisiana first issued the cards in 2012, many cardholders were angered by the transaction fees and other expenses associated with prepaid cards. The state argued that issuing prepaid cards would cut down on the cost of writing checks, saving the state up to $500,000 a year.