US Debit Card

Background

How does the debit card work?

The US Debit Card is a magnetic-stripe bankcard, used by federal agencies to make federal payments to individuals. Federal agencies may load the card with any amount of value, accounted for in a host system with a database of card serial numbers and associated card balances, and then issue the card to a federal payee. Once issued, the card may be used at automated teller machines (ATM) to make cash withdrawals, or at point-of-sale (POS) terminals to make retail purchases. The card may be a disposable payment mechanism, whereby a fixed amount of value is loaded onto the card, and, once this value is spent, the card is discarded. The card can also be a reloadable payment mechanism if the agency wishes to make multiple payments to the payee.

The US Debit Card may be issued "on-the-spot" to a payee in a federal agency's field office, or out of a central office and mailed to the payee or distributed some other way. All value loaded onto the cards is PIN protected and backed by a commercial bank.

What are the uses of the US Debit Card?

• Temporary payrolls, personal services
• Stipends
• Imprest funds, third-party drafts replacement
• Overseas access to foreign currency
• Payments to foreign visitors

Who is using the card today?

• Bonneville Power Administration, Department of Energy
• Bureau of the Census, Department of Commerce
• Forest Service, International Program, Department of Agriculture
• Military Operations
• Peace Corps
• TRANServe, Department of Transportation

* Several additional agencies are piloting the US Debit Card and have asked not to be disclosed at this time.