Economic Impact Payments (EIP)
Updated March 15, 2021
How the Third Stimulus Payments / Economic Impact Payments (EIP) will work
As part of the American Rescue Plan Act of 2021, you may be eligible for a stimulus payment if you filed a 2019 or 2020 tax return, or are an eligible senior or retiree. The stimulus payment amounts may vary depending on your filing status and can be up to $1,400 for individuals or heads of household and $2,800 for married couples filing jointly. Parents may also receive a $1,400 payment for each qualifying child. Consult the IRS website to find information about your anticipated amount, if any.
Stimulus payments may be disbursed by the IRS by direct deposit using the bank account information you provided in your most recent tax filing. Alternately, a check or a pre-paid debit card may be mailed using the mailing address on your most recent tax filing. Similarly, if you receive Social Security or other government-funded benefits by direct deposit, your stimulus payment will be sent to the same bank account as your retirement or pension payments.
The IRS will distribute payments in waves over multiple weeks beginning as soon as March 17, 2021. We will update information here as we receive additional details.
Stimulus Payments: How we are changing our overdraft process
In preparation for the third round of stimulus payments, we made the decision to amend our overdraft processes to provide you access to stimulus payments in their entirety for clients who deposit their Economic Impact payment into a Union Bank deposit account via a check or direct deposit.
If at the time your stimulus payment is deposited (via Direct Deposit from the Treasury or EIP Stimulus Check) your account has a negative balance, we may apply a temporary credit to cover the negative balances in your account so that you may have full access to your stimulus payment. Clients who receive their EIP stimulus via pre-paid debit card or who cash their check are not eligible to receive a temporary credit.
The temporary credit will remain in your account for 90 days, after which it will be reversed, and the amount will become due. You will see this transaction labeled as “Miscellaneous Bank Originated Item” online and in your statement. If you close your account before the end of the 90-day period, the temporary credit amount becomes due and you will have 45 days to repay. If your account has been or is overdrawn for 45 consecutive calendar days, the temporary credit will become due and the account will be closed, even if it’s before the end of the 90-day period. If you do not wish to participate in this service, we can reverse the temporary credit when you contact a branch. To find your local branch, visit our branch locator. If you deposited your Economic Impact Payment into a Union Bank deposit account and did not receive a Temporary Credit and you would like to receive a Temporary Credit please contact a branch or call us at 1-800-238-4486 Monday - Friday 7:00 a.m. to 5:00 p.m. PST, Saturday 8:00 a.m. to 5:00 p.m. PST.
Illustrative Example
This example is for illustrative purpose only. The actual balances, amount and timing of temporary credit issuance may vary based on the method of deposit of your stimulus payment.
Step 1: Temporary Credit Applied
Let’s say the balance in your account at the time a $1,400 stimulus payment is being deposited is negative $250. To ensure you have full access to your stimulus payment, we will temporarily credit the amount overdrawn into your account. Here is an example:
Step 2: Temporary Credit Reversed
After 90 days, regardless of your account balance, we will reverse the temporary credit.
Let’s say that 90 days later, the balance in your account is $300. The previously applied temporary credit of $250 will be reversed, bringing your account balance to $50. Here is an example:
Please note: If the account balance is less than the temporary credit reversal, your account may become overdrawn.
For additional examples describing scenarios for an account in overdraft status and an account with multiple temporary credit reversals, please click HERE
IRS Payment Information Center
The IRS has launched a new Get My Payment website which allows you to confirm and track your stimulus payment status as well as your payment method. You can also visit the IRS FAQ page for the most up-to-date answers to your questions, including:
Tools to help track your payments
FAQs
If my account is closed and the IRS tries to deposit into it, what will happen?
We will attempt to redirect your stimulus payment to an alternate Union Bank account with the same account ownership. If we are unable to do so, the EIP will be returned to the IRS. Please refer to www.irs.gov/coronavirus/economic-impact-payments for information on your payment status.
Will I receive a 1099 for this amount? Will it be taxable?
Union Bank will not be sending a 1099 for the economic impact payments. We ask that you please contact your tax advisor for information on how this impacts you.
How can I access my funds if I receive my stimulus on an EIP Debit Card?
For a printable version of this FAQ click here
Some of the ways you may access the funds on your EIP Debit card1 include:
1For a complete list of ways to access funds held on your EIP Debit Card and for additional details and fees please visit www.EIPCard.com
2To find a surcharge free ATM please visit https://www.eipcard.com/locator. Individuals using a Union Bank ATM will incur a $3.00 surcharge.
Can I use a Union Bank ATM to withdraw cash from my EIP Debit Card?
For a printable version of this FAQ click here
Yes, Union Bank ATMs can be used to withdraw cash from an EIP Debit Cards. When using a Union Bank ATM, you will incur a $3.00 surcharge - that fee may be reversed for Union Bank clients1 upon request.
Additional fees and limitations may apply (Union Bank is not an AllPoint® ATM provider, Out-of-network ATM fees will apply2), please visit www.EIPCard.com to review the MetaBank® N.A. Economic Impact Payment Cardholder Agreement for more information.
1Union Bank clients with an open consumer or business checking, savings or money market account who use a Union Bank ATM to withdraw funds from their EIP Debit Card can request that the Union Bank ATM surcharge be reversed into their Union Bank account by visiting a branch or calling 1.800.238.4486 Monday-Saturday 8:00 a.m. to 5:00 p.m. PST
2To find a surcharge free ATM please visit https://www.eipcard.com/locator. Individuals using a Union Bank ATM will incur a $3.00 surcharge.
What is the process to withdraw cash from my EIP Debit Card using a Union Bank ATM?
For a printable version of this FAQ click here
Please follow the steps below when using a Union Bank ATM to withdraw cash from your EIP Debit Card.
1 EIP Debit Card must be activated and a PIN must be selected. if you have not activated your EIP Debit Card and/or selected a PIN please call 1.800.240.8100 or visit www.EIPCARD.com
2 Visit www.EIPCard.com to review the MetaBank® N.A. Economic Impact Payment Cardholder Agreement for more information.
3Union Bank clients with an open consumer or business checking, savings or money market account who use a Union Bank ATM to withdraw funds from their EIP Debit Card can request that the Union Bank ATM surcharge be reversed into their Union Bank account by visiting a branch or calling 1.800.238.4486 Monday-Saturday 8:00 a.m. to 5:00 p.m. PST
4To find a surcharge free ATM please visit https://www.eipcard.com/locator. Individuals using a Union Bank ATM will incur a $3.00 surcharge.