LANSING – The Department of Human Services' Office of Child Support will begin disbursing child support payments electronically in November, in accordance with state law. This new law requires all child support payments to be electronically disbursed via direct deposit into a personal checking/savings account or to a debit card, unless recipients meet hardship exception criteria.

Currently, about 30 percent of child support recipients have their payments directly deposited into their personal checking or savings account. Customers currently participating in direct deposit are not required to switch to the debit card. Customers not currently participating in direct deposit will, however, be required to choose either the direct deposit to a personal bank account or VISA-branded debit card method for receiving their payments. Paper child support checks will no longer be sent out to customers, unless they meet the hardships exceptions described in the law.

The program begins November 2005 in three pilot counties – Muskegon, Shiawassee and Marquette – and will be phased into the rest of the state during 2006.

"There are many advantages for customers and for the state," said Marilyn Stephen, director of the Office of Child Support. "For customers, direct deposit eliminates delays waiting for checks in the mail, prevents lost or stolen checks, and avoids check cashing fees. For the state, electronic payments are less costly to process, and that’s a benefit to Michigan taxpayers."

The new VISA debit cards, which will be issued at no cost to the customer, can be used like any other bank or credit union debit card at millions of locations that accept VISA debit cards - without incurring any fees. Customers can also get cash back with purchases from any of over 29,000 Interlink merchants in Michigan – again without fees. Customers choosing to access debit card funds using an automated teller machine (ATM) will be subject to ATM fees.

Customers who currently receive paper checks will receive information in the mail when the program comes to their area, and given the choice of direct deposit to checking/savings account or to debit card. In states with electronic disbursement already in place, about two-thirds choose direct deposit to checking/savings and one-third choose direct deposit to debit cards.