Stimulus check: what is an EIP payment and how does it work?
If a second stimulus payment is approved a prepaid Economic Impact Payment card could be delivered to about four million Americans who do not have bank information.
There are roughly four million Americans for whom the IRS do not have bank information and the US tax authority, responsible for the coronavirus stimulus checks, decided to send them an Economic Impact Payment (EIP) card worth up to $1,200 per individual as part of the first round of payments under the CARES Act. EIP cards are debit cards that you can spend like cash or use to transfer the funds to your bank.
EIPs work the same as a regular debit card and can be used to make purchases online with the same protection plan. They can be used to make purchases anywhere a debit card is accepted, withdraw cash from ATMs and transfer the stimulus funds to any account the holder wants without a fee.
Activating the EIP card
Payment cards are often sent in plain envelopes to deter fraud and thieves. If you do not want to receive an EIP card and would rather get the money deposited directly if there is a second stimulus payment, then you can go through the ‘Get My Payment’ portal to fill out your bank information.