What ReliaCard actually is

ReliaCard is a prepaid debit card, not a checking account. It holds money you load onto it, but it does not come with a routing number, does not offer check-writing, and does not build a banking relationship with a financial institution the way a checking account does. ReliaCard is managed by Conduent and is most commonly used to receive unemployment benefits, workers' compensation, or other state payments.

The card functions like a debit card at stores and ATMs. You can spend what is loaded on it, check your balance online or by phone, and set up direct deposits. But it lacks the core features of a checking account: you cannot write checks, you cannot overdraft, and there is no FDIC insurance on the funds themselves (though the money is held in a trust account).

If you are looking for a checking account to replace ReliaCard or to use alongside it, you will need to open an account at a bank or credit union. ReliaCard is a tool for receiving and spending specific payments, not a substitute for banking.

Key Takeaways

  • ReliaCard is a prepaid debit card issued by Conduent, commonly used for unemployment benefits and state payments, not a checking account.
  • You can use ReliaCard to spend money at stores and ATMs and to receive direct deposits, but you cannot write checks or overdraft.
  • ReliaCard does not give you a routing number or a banking relationship, so you cannot use it for bill pay through your bank or set up automatic transfers the way you would with a checking account.
  • If you need a checking account for regular banking, you will need to open one separately at a bank, credit union, or online bank.
  • Funds on ReliaCard are held in a trust account but are not FDIC-insured the way deposits in a checking account are.

How ReliaCard differs from a checking account

A checking account is a contract between you and a bank or credit union. The institution holds your money, insures it up to $250,000 through the FDIC or NCUA, and gives you tools to move it: checks, debit cards, online transfers, and bill pay. You have a routing number and account number that you give to employers or other payers so they can deposit money directly into your account.

ReliaCard gives you none of those. It is a card with a balance. You cannot write checks on it. You cannot set up bill pay through it. You do not have a routing number to give an employer. The card is tied to a trust account, but your money is not insured the same way it would be in a checking account at a bank.

The main advantage of ReliaCard is that it requires no credit check and no minimum balance. If you are receiving unemployment or a state benefit, the payment goes directly onto the card. The main disadvantage is that it is limited to spending and ATM withdrawals—it does not replace banking.

When ReliaCard is issued and how to use it

ReliaCard is issued by your state when you are approved for unemployment benefits, workers' compensation, disability payments, or other state programs. You do not request it separately; it arrives in the mail once your benefit claim is processed. The card is activated when it arrives, and your first payment is usually loaded within a few business days of approval.

Once you have the card, you can use it at any ATM that accepts Visa or Mastercard (depending on which version your state issues). You can also use it at stores like any debit card. You can check your balance online through the ReliaCard website or mobile app, or by calling the customer service number on the back of the card. Some states allow you to set up direct deposit from ReliaCard to a checking account at another bank, though this varies by state.

If you lose the card, you can request a replacement through the ReliaCard website or by phone. There is usually no fee for a replacement, though it may take 7 to 10 business days to arrive.

Fees and costs associated with ReliaCard

ReliaCard charges fees for certain transactions, though the exact fees depend on your state and the specific card program. Common fees include ATM withdrawals at out-of-network ATMs (usually $1 to $2 per withdrawal), balance inquiries at some ATMs, and replacement card fees in some states. Many states waive the first few out-of-network ATM withdrawals per month.

There is no monthly maintenance fee on most ReliaCard programs, and there are no overdraft fees because you cannot overdraft. You can only spend what is loaded on the card. Some states offer a limited number of free in-network ATM withdrawals per month, so check your state's program details to see what is included.

If you are paying fees regularly on ReliaCard, opening a checking account at a bank or credit union may save you money in the long run, especially if you use ATMs frequently.

Opening a checking account if you have ReliaCard

You can open a checking account at any bank, credit union, or online bank while you have ReliaCard. The two can coexist—ReliaCard receives your state benefits, and your checking account is for regular banking. Many people do this so they can write checks, set up bill pay, and have FDIC insurance on their money.

To open a checking account, you will need a government ID, proof of address (a utility bill or lease), and usually a Social Security number. Some banks and credit unions offer accounts with no minimum balance or monthly fee, which can be a good fit if you are also receiving benefits through ReliaCard. Online banks like Chime, Ally, or Charles Schwab often have no monthly fees and no minimum balance.

Once your checking account is open, you can transfer money from ReliaCard to your checking account at an ATM or through the ReliaCard website if your state allows it. This gives you the flexibility to keep your benefit payments on ReliaCard and use your checking account for bills and regular spending.

What to do if you have problems with ReliaCard

If your card is lost, stolen, or not working, contact the customer service number on the back of your card or visit the ReliaCard website. You can report a lost or stolen card immediately, and a replacement will be mailed to you. If there is an unauthorized transaction, report it within 60 days and the card issuer will investigate.

If you have a question about your balance or a specific transaction, you can check your account online or call customer service. Keep your transaction receipts so you can reference them if there is a dispute. If you believe money is missing from your account, report it to customer service and ask for a transaction history.

If you are having trouble accessing your account online or if the card is declined at a store, call customer service to troubleshoot. Sometimes the card needs to be reactivated, or there may be a temporary hold on the account.

Frequently Asked Questions

Can I use ReliaCard to pay bills online?

You can use ReliaCard like a debit card to pay bills online if the biller accepts Visa or Mastercard. However, you cannot set up automatic recurring payments or bill pay through ReliaCard the way you would through a checking account. For recurring bills, a checking account is more practical.

Does ReliaCard build credit?

No. ReliaCard is a prepaid card and does not report to credit bureaus. Using it does not build your credit history. If you want to build credit, you will need a credit card or a checking account with a linked credit product.

Can I transfer money from ReliaCard to another bank account?

Some states allow transfers from ReliaCard to a checking account at another bank, but this varies. Check your state's ReliaCard program website or call customer service to see if transfers are available and what the process is. There may be a fee for transfers.

What happens to money on ReliaCard if I stop receiving benefits?

The money stays on your card and you can continue to use it. Your state will not close the card or take the money back. However, if you do not use the card for a long period, some states may charge an inactivity fee, so check your program details.

Is ReliaCard safer than carrying cash?

ReliaCard is generally safer than carrying large amounts of cash because the card can be replaced if lost or stolen, and unauthorized transactions can be disputed. However, your funds are not FDIC-insured the way they would be in a checking account, so there is a difference in protection level.