ReliaCard is a prepaid debit card, not a checking account

ReliaCard is a prepaid card issued by Conduent, a payment processor that handles benefits distribution for state and federal programs. It functions as a debit card—you load money onto it and spend what's there—but it is not a checking account. A checking account is a deposit account held at a bank or credit union where your money sits in an account number that belongs to you. A prepaid card is a stored-value product where funds are held by the card issuer, and you access them through the card itself.

ReliaCard is most commonly used as the delivery method for unemployment benefits, workers' compensation, and other state-administered payments. Some states also use it for tax refunds. The card arrives in the mail, you set up it, and benefits are deposited directly onto it. You can withdraw cash at ATMs, make purchases at merchants, and pay bills online—but you do not have the account protections or features that come with a checking account at a bank.

Key Takeaways

  • ReliaCard is a prepaid debit card issued by Conduent, not a bank checking account, and is used primarily to receive unemployment and workers' compensation payments.
  • Money loaded onto ReliaCard is held by the card issuer, not deposited into an account in your name at a financial institution.
  • You can withdraw cash, make purchases, and pay bills with ReliaCard, but you cannot write checks or set up automatic bill payments the way you can with a checking account.
  • ReliaCard charges fees for certain transactions—ATM withdrawals outside the network, balance inquiries, and replacement cards—which checking accounts at banks typically do not.
  • If you need a checking account for check writing, direct deposit from an employer, or overdraft protection, you will need to open an account at a bank or credit union instead.

How ReliaCard works versus a checking account

When you receive benefits on ReliaCard, the money is deposited onto the card by the state or federal agency. You then use the card like a debit card: swipe it at stores, use it at ATMs, or enter the card number online to pay bills. The card has a PIN you set during set up, and you can check your balance through the Conduent website or a mobile app.

A checking account works differently. Money is deposited into an account held at a bank or credit union in your name. You can access that money through a debit card, checks, ATM withdrawals, or electronic transfers. The bank holds your money in trust and is required to follow federal deposit insurance rules (FDIC or NCUA coverage). ReliaCard does not offer this same protection—your funds are held by Conduent, and the protections that explore are limited to the prepaid card rules set by the Consumer Financial Protection Bureau and your state.

The practical difference shows up when you need to write a check, set up automatic bill payments, or receive a direct deposit from an employer. ReliaCard cannot do any of these. If your benefits arrive on ReliaCard but you need to pay rent by check or set up autopay for utilities, you will need to withdraw the cash and deposit it into a checking account, or use the card's bill-pay feature (which has limits and may charge fees).

Fees and costs on ReliaCard

ReliaCard charges fees that a checking account at most banks does not. The most common are ATM withdrawal fees outside the Conduent network (typically $1.50 to $2.50 per withdrawal), balance inquiry fees at out-of-network ATMs, and replacement card fees if your card is lost or damaged. Some states subsidize these fees for unemployment recipients, but not all, and the subsidy may expire after a certain period.

Checking accounts at banks and credit unions typically do not charge per-transaction fees for ATM withdrawals at their own machines, and many offer free ATM access through shared networks. Some checking accounts charge monthly maintenance fees, but many do not, especially if you maintain a minimum balance or set up direct deposit. If you are paying $2 per ATM withdrawal on ReliaCard and withdrawing cash weekly, that adds up to over $100 per year—money you would not spend with a checking account.

When you might need a checking account instead

If you receive benefits on ReliaCard but also have income from a job, you will likely want a checking account at a bank or credit union. Employers typically offer direct deposit only to bank accounts, not prepaid cards. If your employer can deposit to ReliaCard, the process is slower and less common than direct deposit to a bank account.

You also need a checking account if you pay bills by check, need overdraft protection, or want to build a banking history for future credit applications. Some landlords and utilities require payment by check or automatic bank transfer, not prepaid card. If you are saving money, a checking account at a bank or credit union may offer interest (though rates are typically very low), whereas ReliaCard does not.

Many people use both: ReliaCard for benefits and a checking account at a bank for regular income and bill payments. You can transfer money from ReliaCard to your checking account by withdrawing cash and depositing it, or by using a bill-pay service if your bank and the card issuer support it.

Opening a checking account if you have ReliaCard

If you decide you need a checking account, you can open one at a bank or credit union even while using ReliaCard. You will need a government-issued ID, proof of address (a utility bill, lease, or bank statement), and usually a Social Security number. Some banks and credit unions also check ChexSystems, a banking history database, but many offer accounts to people with no banking history or a negative ChexSystems record.

Credit unions often have lower fees and more flexible requirements than banks. If you are not a member of a credit union, you can search for one in your area through the CO-OP network or your state's credit union league. Community banks also tend to have simpler requirements than large national banks.

Once you have a checking account, you can transfer money from ReliaCard to your checking account by withdrawing cash at an ATM and depositing it, or by requesting a transfer through your bank's website if they support it. Some banks allow you to link external accounts and move money electronically, though this depends on the bank's policies and the card issuer's support.

What happens to ReliaCard when benefits end

When your benefits end—for example, when your unemployment claim expires or you finish a workers' compensation claim—the ReliaCard remains active but no new deposits are made to it. You can continue to use the card to spend any remaining balance, but you cannot reload it yourself. Once the balance reaches zero, the card becomes inactive.

If you receive benefits again in the future, the state may reactivate your existing card or issue a new one. Check your state's benefits website or contact the program directly to find out what happens to your card when benefits end. Do not throw the card away when ready—keep it until you confirm with the program that you will not need it again.

Frequently Asked Questions

Can I use ReliaCard to set up direct deposit from my job?

Most employers do not support direct deposit to prepaid cards. You will need to provide your employer with a bank account number and routing number, which ReliaCard does not have. If your employer offers direct deposit to ReliaCard, it is rare and requires special setup. For most people, opening a checking account is the practical solution.

Can I write checks with ReliaCard?

No. ReliaCard is a debit card only and does not come with a checkbook. If you need to pay by check, you must withdraw cash from the card and deposit it into a checking account, or use the card's bill-pay feature if available (though this may charge fees and has limits).

Is my money on ReliaCard protected if Conduent goes out of business?

ReliaCard funds are held in a trust account and are generally protected under state and federal prepaid card regulations, but the protections are different from FDIC insurance on a bank checking account. Your state's benefits program should have information about what happens to funds in case of card issuer failure. Contact your state's benefits office for details.

Can I transfer money from ReliaCard to my checking account?

Yes, but the method depends on your bank. You can always withdraw cash at an ATM and deposit it into your checking account. Some banks allow you to link ReliaCard as an external account and transfer money electronically, but this is not universal. Contact your bank to ask what options are available.

Do I have to use ReliaCard, or can I choose direct deposit to a bank account instead?

This depends on your state and the specific program. Some states allow you to choose how you receive benefits; others require ReliaCard. Contact your state's benefits program to ask whether you can opt for direct deposit to a bank account instead. If you can, you will need to provide your bank account number and routing number.