Kansas Law Limits Welfare ATM Withdrawals, Incurs Fees Posted by Association of Vermont Credit Unions on 2:45 PM

MSN Money reports that a Kansas state law intended to stem welfare subsidy abuse is claimed to impose severe limitations on withdrawals by ATM and also cost recipients 10% or more of their benefits. The new law takes effect on July 1 and bans welfare recipients from taking out more than $25 in benefits a day from an ATM.

A single parent family of 3 in Kansas with no other earnings receives about $429 a month from the Kansas welfare system. Most ATMs don't stock $5 bills, so the Kansas law effectively limits withdrawals to $20. In addition, Kansas banks reportedly charge $1.50 to $2.00 per EBT transaction, and the state charges another $1 per ATM withdrawal. All told, that's a nearly 10 percent benefit cut and daily withdrawals.

Welfare recipients don't have to withdraw the money to use it, but every other way of spending it brings fees too. You can use an EBT card like a debit card at merchants, and get small amounts of cash back at stores allowing it. But using an EBT card at a "point of sale" more than twice per month incurs a 40-cent-per-transaction fee from the state.

Read the article in entirety on MSN Money.