Debit card to replace paper check for VA tax refund - NBC12 - WWBT - Richmond, VA News On Your Side

Debit card to replace paper check for VA tax refund

RICHMOND, VA (WWBT) -

How you get your state tax refund this year is changing. That check in the mail is no longer an option.

Now you will have to choose between direct deposit or your tax refund on a debit card.

However, according to the Virginia Department of Taxation, there are fees - and that's bringing a mixed reaction.

According to the department, getting rid of the paper checks will save The Commonwealth $200,000 a year. It's a new program that many people don't even know about.

"I think it's going to be a learning curve," said Maureen Goode. She works for MetroCash, an organization that offers free tax filing assistance. She said not everyone can use direct deposit.

"There are people that do not have bank accounts - we call them unbanked," she said. "I think they're going to be a little bit concerned about the card."

The card works like a debit account, so users should beware of incurring fees. Those could come from making a withdrawal from some ATMs or from not activating or using the card in a certain amount of time.

Robin Irby received a check for years, but she says she can adapt to the change.

"Because, you know, checks get lost in the mail. Then you have so many problems with the check," said Irby.

Bonita Thomas is a bit more reluctant.

"It's just easier and I like to see the money instead of putting it in the bank or whatever. I like to know what I'm going to do with it," said Thomas.

She doesn't like the idea of any card fees.

"That means I'm losing money and at this day and time with the way things are in the economy every dollar helps," she said.

There are ways to withdraw your money without paying any fees. State leaders maintain this is a much safer way when it comes to getting your tax refund.

According to tax leaders, Xerox will pay for administering this card. The company hopes to recoup the costs through those fees and payments from retailers using the card.

Copyright 2013 WWBT NBC12.  All rights reserved.

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