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Welfare recipients pay high fees at ATM for benefits

March 23, 2006

CBS (Denver) Channel-4: Denver welfare recipients have paid more than $1.8 million in ATM fees in the last two years to access their benefits, The Denver Post reported March 22. Welfare recipients receive electronic benefit transfer cards that allow users to shop without the stigma of counting out food stamps in checkout lines. For welfare recipients without bank accounts, the EBT cards let them access their benefits. But if they use them at most ATMs, they're charged 85 cents. And some banks add their own fees for non-customers.

Colorado and eight other states have welfare recipients pay their own ATM surcharges; 26 states pay for welfare clients to make up to four free ATM transactions a month.

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