The state of Michigan is planning to switch to Bank of America (BoA), replacing JPMorgan Chase, as provider of its unemployment debit cards in the state in April 2014.
According to the state, the new contract will cost them around $100,000 a year, but would generate savings of $150,000 for thousands of jobless people, who complained of being charged with high fees for using Chase-issued cards at ATM machines for balance inquiries, teller withdrawals and transaction denials.
Go deeper with GlobalData
Michigan offers unemployment checks on debit cards to around 82,000 people in the state.
With BoA, cardholders will have access to over 1,200 free ATMs, as against to around 1,000 offered by Chase.
Michigan Department of Technology, Management and Budget spokesman Kurt Weiss said people will see that fee and many others go away after Bank of America takes over.
"This is gonna be a much better tool for them, and cheaper for the state, so really everybody wins on this," Weiss added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData"The joint review committee made a recommendation based on the best value for the state and Bank of America won.
"We have had a good track record with Bank of America on our state purchasing card contract and we look forward to working with them on this new contract."
