Green Dot Corp. said late Thursday that it has been named program manager for a U.S. Treasury Department pilot program that will enable taxpayers to obtain their federal tax refunds via direct deposit to a prepaid debit card.
The Monrovia financial services company said the program is aimed at taxpayers who do not have traditional bank accounts. The new MyAccountCard Visa Prepaid Card will be issued by Bonneville Bank, a Utah bank that Green Dot has targeted for acquisition.
The new tax cards will feature free online bill pay, free ATM cash withdrawals at network sites and free cash back at participating retail stores. If successful, the program could introduce Green Dot to new long-term customers. Taxpayers using the program will be able to continue refilling and using the cards under Green Dots’ regular fee schedule after their refund money is spent. They can be reloaded with proceeds from payroll checks, government programs or cash at Green Dot’s retail network outlets.
About 600,000 low- and moderate-income individuals will be notified about the program by mail starting next week, Green Dot said.
Last February, Green Dot entered into a definitive agreement to acquire Bonneville, a small Provo bank, for $15.6 million. The deal is still awaiting regulatory approval.
Green Dot shares closed up $1.98, or 3.4 percent, to $60.90 on the New York Stock Exchange.
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