Green Dot Wins Treasury Contract
Green Dot will manage the US Department of the Treasury’s new debit card program, according to an announcement released this morning.
The new account will give Green Dot 600,000 new accounts. Green Dot already has 3.3 million customers for its card.
Treasury is hoping to save a lot of money. Printing a paper check costs about $1. Sending a payment through direct deposit costs about ten cents. Treasury will spend $1.5 million to make the switch, but that cost will easily be recouped and should result in a net savings of more than $3.5 million for each round of deposits sent to the new recipient class. The new accounts will be used to send tax refunds.
This should be a great deal for consumers that still haven’t moved from check cashers over to a direct deposit-enabled debit card.
Adam
January 13, 2011
Buried in Treasury's press release is a second significant fact: the cards are not going to use Comerica Bank as their issuer, but rather Bonneville Bank.
Bonneville is the Utah bank that Green Dot agreed to purchase last summer. Green Dot is still waiting to get approval on the transaction. Seeing Bonneville on the Green Dot deal makes it seem much more likely that approval is only a formality.
Tweets that mention Green Dot Wins Treasury Contract | Bank Talk -- Topsy.com
January 14, 2011
[...] This post was mentioned on Twitter by CRA-NC. CRA-NC said: Green Dot Wins Treasury Contract for debit card program. Savings for US, and for consumers. http://j.mp/fXMXcH [...]
Paul Bonner
January 14, 2011
Good quote in Tax Notes, Adam.
sdoggie
January 14, 2011
Thanks, Paul!