Washington State welfare recipients will no longer have to pay an 85 cent fee when they use their benefits card to take out cash at the ATM.
The fee was eliminated during recent contract negotiations between JPMorgan Chase and the state, according to a story by NPR. The FI will continue to provide the electronic benefits service, but will drop the ATM surcharge.
The renegotiated contract also lowers the amount the state pays Chase to administer the program, said Babs Roberts, with the Department of Social and Health Services. She told NPR that Washington taxpayers will save millions on the new contract, which extends through 2019.
The 85 cent fee raised a furor when it was brought to public attention in May of 2011 by Therese McLeod, a client in the Washington cash assistance program. NPR said that at the time, Chase was taking in $100,000 a month in fees paid by welfare recipients.
For more on this topic, visit the transaction processing research center.