Illinois joins a growing number of states moving to pay tax refunds by issuing debit cards. Individual taxpayers filing their returns electronically for 2012 can receive a VISA prepaid debit card issued by Chase. While a taxpayer can still elect to receive a check or direct deposit refund this year, several other states have moved to exclusively paying individual tax refunds by debit cards, and this may be the direction taken by Illinois in future years.

Under VISA's rules, any financial institution that is a VISA member must cash the debit cards without imposing surcharges or other fees. Before cashing a card, institutions must request one piece of identification and compare the signature on the card with the signature on the transaction receipt. VISA is requesting that institutions do not ask these debit cardholders to use ATMs, but it does allow institutions to establish a cash withdrawal maximum of at least $5,000 per day, per cardholder. The Illinois Department of Revenue has issued an FAQ for taxpayers on these prepaid debit cards.