Late last month, the North Dakota Department of Human Services began using debit cards or direct deposits to pay child care providers, a move department officials say allows payments to be received quicker.
About 3,115 regulated providers participate in the state's child care assistance program, which helps low-income parents who work or attend school afford child care.
"We are making these changes for a variety of reasons," said Carol Cartledge, public assistance director for the department. "The providers will receive their payments quicker, plus there will be some cost savings with the reduction of paper and postage."
In April, 105 families in Stark County utilized the child care assistance program, she said. The amount paid for care under the program in April was about $817,000 throughout the state. About $33,000 of that was paid in Stark County.
So far, Cartledge said she hasn't heard much feedback about the program.
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"It's still relatively new, the ones that are getting direct deposit, that had been requested for quite some time," Cartledge said. "Many of those are very excited to move in that direction. Those with the card are very excited to have it because they get the payments faster. I haven't heard a lot of pros or cons about it yet because it's so new."
The department will pay participating licensed group providers, such as after-school programs and child care centers, by direct deposit into their bank accounts. Other smaller child care providers will receive a US Bank Visa debit card for electronic payment transfers.
Cartledge said it will work like any other prepaid debit card. It can be used to make purchases on-line, in grocery or retail stores, restaurants or anywhere Visa is accepted. The debit card allows for cash withdrawals at any ATM machine or bank.
Since the changes are relatively new, there are still some kinks to work out, said Carolyn Freer, of Luv'n Care day care in Dickinson.
"It's awesome if I don't have to go cash more checks, and just do the direct deposit," Freer said. "I think it might (work better) once all the kinks get worked out. I'm still not quite sure how they are going to let us know whose money is whose.
"I can understand if they're trying to save on envelopes, paper, all that stuff, but I guess unless they send me an e-mail saying this much money goes to this person, how am I going to know?"
Freer said she has requested to have direct deposit and not the debit card.
Group or day care centers with questions about direct deposit payments can call the NDDHS Child Care Assistance Program at 701-328-2332.
