TORONTO—The City of Toronto has begun a project to replace welfare cheques with a micro-chipped debit card called the “City Services Benefit Card.”
The card works much like a debit card, but does not require a bank account. It will provide users four monthly withdrawals, and can be used at any location where MasterCard is accepted.
It will also protect the privacy of users by concealing the fact that they are receiving aid from Ontario Works when they use the card.
Approximately 22,000 Torontonians—the 25 percent of Toronto’s 110,000 welfare recipients who do not have bank accounts—will be able to use the card and avoid costly cheque-cashing fees.
By no longer issuing cheques, Toronto Employment & Social Services (TESS) will save money that can be better spent on helping residents find work, says Councillor Michael Thompson.
Five of the 15 TESS locations (Lesmill, Wellesley Place, Malvern, the Queensway, and Yonge-Eglinton) started using the cards Thursday, and the other 10 locations will roll out the card after testing is completed.
Similar cards are already being used in the United States where much controversy has been sparked about their use in casinos, liquor stores, strip clubs, and other questionable purchases.
At the moment, there are no restrictions placed on the Canadian welfare cards.
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