The Illinois Department of Employment Security (IDES) announced that in the coming weeks, unemployment insurance benefit payments will no longer be made by debit card. Beginning December 27, 2021, claimants who defaulted to a debit card option as their preferred method of payment will begin receiving paper checks instead of the benefits being placed on a debit card. The Department will continue to make benefit payments as normal to those claimants who chose to receive them via direct deposit. The change comes after the Department’s vendor, KeyBank, made the decision to stop providing debit cards for unemployment insurance benefit purposes. To ensure there is no interruption or extended gaps in benefit payments to claimants, IDES has contracted with Chase bank. Benefit payments will be made via paper check rather than a debit card, or via direct deposit to the claimant’s banking institution. While claimants will still have access to remaining funds on their KeyBank debit card, no further payments will be made to those cards beginning December 27. KeyBank debit cards will continue to work normally until the card expires. Claimants who currently receive benefit payments via debit card are strongly encouraged to switch to direct deposit. Doing so will result in quicker access to benefit payments. Claimants who switch to direct deposit can do so within their IDES account after they have successfully registered with and created an ILogin account. Step-by-step instructions on switching to direct deposit can be found in Direct Deposit Guide on the IDES website at ides.illinois.gov/payment.
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