How Calif. taxpayers' money is wasted on bank fees thanks to EBT system

BAKERSFIELD, Calif. - California taxpayers are losing tens of millions of dollars every year to ATM fees.

Welfare recipients who are issued EBT cards must go to ATM to get cash and every time they do there is a fee.

The state of California says last year those fees added up to $18 million.

People 23 ABC spoke to say the system is not fair and there needs to be a better way to get the money into the hands of the people who need it without paying bank fees.

23 ABC tried to contact several local banks to talk about those fees but no one got back to us.

The Department of Human Services says they do counsel their clients about where they can go to withdraw their money without paying a fee.

But they say for people already living on the edge of society they don't always have the choice of going somewhere that does not charge a fee.

Human Services says the cycle of poverty sometimes prevents clients from having bank accounts or transportation so they can avoid the fees.

If you would like to see what banks chare ATM fees and how much click here.


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