Electronic payments create significant savings and improved convenience

State of Maryland switches from cumbersome system, which had high costs for check printing, administration and delivery

    The challenge

    The State of Maryland needed a faster, more reliable and more cost effective way of making unemployment benefit payments to citizens who depended on them.

    The State's original process was proving cumbersome and costly, with large sums spent on check printing, administration and delivery. There were further concerns related to equipment breakdowns and the security and re-issuance of checks.

    In addition, Maryland needed an effective service for citizens who had no personal bank account.

    The solution

    Citi Prepaid Services rapidly devised and launched a comprehensive solution that allowed Maryland to shift from paper checks to electronic delivery.

    Citizens are now issued with personalized cards, to which the State can upload payments when due.

    The cards allow fee-free withdrawals at Citibank ATMs, can be used at stores and banks displaying the Visa logo, and to access cashback at participating retailers.

    Users also have the option to manage their account online and make bank transfers, all free of charge.

    The result

    Overall, the solution has streamlined processes for Maryland's Department of Labor, Licensing and Regulation.

    The elimination of paper checks alone saved an estimated $400,000 a year and eliminated the problems caused by lost or delayed checks. Citizens also benefit from a highly convenient means of accessing their unemployment payments.