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Stimulus Round Two: Two-Thirds Of Payments Reach Bank Accounts

The U.S. Department of the Treasury has electronically sent out two-thirds of the second round of individual stimulus checks, or over $112 billion in payments, according to a report from The Wall Street Journal (WSJ).

The payments of $600 for every adult and child totaled a cost of around $164 billion, WSJ reported.

The payments come as part of the $900 billion relief bill passed at the end of last month, which also included money to go toward assistance for unemployment and small businesses.

The disbursements are going faster than the initial round of $1,200 payments for adults from last spring’s CARES Act, which only saw around half of those payments reaching people within two weeks.

In addition to the digital payments, further payments are going out in the mail and on prepaid debit cards, although WSJ reported that it’s unknown how many payments have been made.

“While the IRS has been able to deliver the second round of Economic Impact Payments in record time, we understand there are many questions and we appreciate everyone’s patience during this period,” the agency said in a statement late Tuesday (Jan. 5), according to WSJ.

The problems from last spring’s rollout are likely to reoccur in some ways, including households that have changed bank accounts, payments going to former spouses by mistake and some simply not getting the full amount of the payments, according to WSJ.

In related news, the IRS is warning of scams related to the stimulus payments, PYMNTS reported. The IRS said it will never call to ask for or verify financial information, and anyone doing so is likely a predator. In addition, the IRS said bad actors could send fraudulent emails that seem like they come from the organization but have suspicious-looking links.

PYMNTS reported that the most important question surrounding the second round of stimulus payments is: What will consumers do with the money? After receiving the first-round checks, many consumers tended to pay debt or pad savings accounts.

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