Stimulus payments were sent out to about four million qualifying Americans in the form of Economic Impact Payment Cards, or EIP cards, back in May. There's a possibility that Internal Revenue Service is sending out the same thing again.

EIP cards were sent to only a small portion of the 159 million stimulus checks that IRS first sent out. Most stimulus payments for the first round were sent either as direct deposits or a physical check.

Americans who received payment as EIP cards can use the funds at any retail store where Visa cards are accepted, online or at ATMs, said a Pop Culture report.

Senate Republicans and House Democrats still haven't agreed on specifics regarding the stimulus. This leaves many wondering when the second stimulus payments will be coming and if the second check will come the same way.

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Could You Get EIP Cards Instead of Stimulus Checks? Image by benscripps from Pixabay

Here are some things you need to know about EIP cards and whether you could get a second stimulus in this form soon.

What is an EIP card?

An EIP card is a prepaid debit card. According to CNET, it is used by the Treasury Department to distribute stimulus payments under the CARES Act.

It was the Treasury Department's alternative to electronic money transfer or paper checks. It is provided to some eligible US residents who did not have banking information stored in the government files.

The EIP card can be used to buy from stores, get cash from in-network ATMs and transfer funds to personal bank accounts without a fee.

Once this card arrives, the user has to head to the EIP card website to activate it. Information on how to use it is also available on the website.

Who is qualified to get stimulus payments through EIP cards?

Those who received the first round of stimulus payments through an EIP card instead of a check will likely get it through the same means again.

Payments may also be sent through EIP cards if a person's tax return was processed by IRS service centers in Andover, Massachusetts, or Austin, Texas, according to a Treasury press release. The significance of these service centers is not yet clear.

How are EIP cards sent?

If a person is qualified, their EIP card will be sent to the address listed on their last tax return. It will be in an unmarked envelope from "Money Network Cardholder Services."

For the first round of stimulus payments, Value Walk report said about 800,000 people possibly threw the letter away before opening it. It was easy to do this as the letter wasn't clearly marked.

Payment cards are usually sent as such, in plain envelopes, to avoid fraud and thieves. It's not yet clear if the IRS will send the second round of payments in an unmarked envelope too.

If you received an EIP card for the first round, you'll likely get another one.

How fast would it take to get an EIP card for the stimulus?

If another coronavirus relief bill is passed, it will take longer to get EIP cards going than by direct deposit.

When CARES Act was passed in March, the first EIP cards did not come out until mid-May. It is possible, though, that the process will be faster as there is already a path to follow.

Tracking the second round of payments can be done through the Track My Payment tool from IRS.

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