Toronto will replace welfare cheques with debit cards
Not a bad idea, but can you use it to take cash out of an ATM? There are a lot of times you'll need cash, e.g. you can't use a debit card to get on a subway
This seems progressive. What's the hitch?
Not a bad idea, but can you use it to take cash out of an ATM? There are a lot of times you'll need cash, e.g. you can't use a debit card to get on a subway
Works in any ATM, according to the article
This seems progressive. What's the hitch?
I can think of a few, but in theory I think this is a good move in a lot of ways.
Can you enumerate them? I haven't had time to think about it too deeply.
ATM fees?
I can't see any problems with this either. A rare example of technological changes intended to help people, not scam them?
@ Caissa
Me?
None too big - just thinking of people who might have trouble with the technology, or being a target for robbery (though the same situation exists if you come straight from the payday sharks with a pocket full of money) or the fact that those cards aren't THAT durable.
But as I said, I can think of many more ways in which this is an improvement - from the saving, to the reduced embarrasment, to cutting into the payday sharks' profits.
As for the decision, even a pig with a stuffed-up nose finds a truffle now and then.
ATM fees?
I don't think that's a serious problem. It depends what institution these are associated with, but in theory they can use their own bank machines and go to tellers like the rest of us who try to avoid bank fees.
Even a $1.25 ATM fee is a significant improvement on the up-to 10% charges of the cheque-cashing "services".
They will not be mandatory for those on social assistance but the city’s goal is that most, if not, all recipients make the switch.
“Our aim is that everyone will use the card,” MacVicar said, but adding that “if there would be a situation where it’s impossible for someone to use a card, we wouldn’t force people.’
It might not be a bad idea - at least to try - as long as they keep it optional, and don't impose restrictions on where people can use it.
I do wonder if money management might be a problem. With cash I think it's easier to recognize how quickly you're spending your money, and keep track of how much you have left. I don't use my debit card at stores, but I don't think you get a printout of your remaining balance after a transaction, do you? People who have a hard time keeping track of such things might find themselves having an even harder time making their money stretch to the end of the month.
Not a bad idea, but can you use it to take cash out of an ATM? There are a lot of times you'll need cash, e.g. you can't use a debit card to get on a subway
In that case, I can't think of any drawbacks.
I know that certain jurisdictions in the states moved to debit cards but they did it in such a way that they could only be used for certain items (e.g. no alcohol or tobacco) and couldn't be used to take out cash which goes back to my earlier point of how you often NEED cash to use for things like transit, etc.
Works in any ATM, according to the article
"I don't think that's a serious problem. It depends what institution these are associated with, but in theory they can use their own bank machines and go to tellers like the rest of us who try to avoid bank fees."
A very high percentage of poor people don't have bank accounts (due to ID issues, etc), which is why many got to cheque cashing places and pay the exorbitant fees in the first place. The city will have to negotiate with the banks to allow people to use ATMs without fees for this to work properly. I understand they are doing that now.