In South Carolina, Bank Of America Takes A Piece Of State Income Tax ReturnsQuicklink submitted By Amanda Lang Permalink
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|This year South Carolina income tax refunds will arrive on prepaid debit cards unless taxpayers specifically opt for a check or direct deposit.
The change could potentially save South Carolina as much as $1 million in printing and mailing costs this year, state projections indicate. And for the nearly 200,000 South Carolina households that do not have bank accounts, a prepaid debit card offers an end run around check-cashing fees and protects against the risk of holding so much cash.
But the biggest winner could be Bank of America, which will issue the prepaid cards and stands to collect an untold amount in fees from card users and merchants who own the stores where the cards may be used.