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Virginia’s new tax refund card is jangling the nerves and wallets of some taxpayers.

State refunds are loaded onto the Way2Go cards, which work like debit cards, and taxpayers are supposed to be able to use them for free in some instances.

But it is not working out that way, taxpayers say. They are getting hit with fees that they didn’t expect and they are getting charged for services that are supposed to be free.

The Virginia Department of Taxation confirmed Wednesday that incorrect information has been relayed and incorrect fees have been charged.

Dell Cheatham of Prince William County said he tried to transfer money online from his card into his bank account but terminated the call because he was told there would be a $2 fee. He was charged $1 each for two calls he then made to customer service.

“It’s a lot of headache for a couple bucks. But I am concerned this … ‘programming issue’ might be taking advantage of other Virginians who are not stubborn or maybe stupid enough to spend an entire evening to fight through this system.”

Taxpayers say when they try to report bogus fees, they get hit again with yet another fee for calling customer service.

Steve Slater of Wytheville, who chose the debit card, said he tried to transfer his full refund amount to his bank account but was told there would be a $2 fee.

He called customer service to complain — since card users get one free transfer — and he was charged $1 for making the call. He called again, because card holders are supposed to get two free calls a month to Way2Go representatives, only to get hit with another $1 fee.

Slater said he was told the charges would be reversed in five days, but 10 days later, they still weren’t reversed and he called customer service once again. “I was told that my account had been reviewed and a decision reached that the charges would not be reversed.”

By making three calls, he was $3 short.

Taxpayers can access the Go Program website for free to activate their cards, check balances and check on transaction history.

They can use the card for free at retailers or online to make debit purchases. But the cards carry a host of fees, including a $3 charge per month if the card is activated and there is no activity on it for six months.

David Simon of Alexandria said he called an automated system to activate his card and select a personal identification number.

“I was happy to hear that my balance matched my expected return,” he said. “From there, it was downhill in small, aggravating and unfair ways.”

He wanted to do a direct transfer into his bank, so he called customer service and was told to call the automated system. He navigated through the automated menu. A recording told him the transaction would take two days. He aborted the “transfer to bank” option.

He went to a bank, where he is a customer, and tried to do the transfer in person, but the transfer was declined for “insufficient funds.”

He called customer service again and was told his balance was $2 less, $1 for each call to customer service, hence the insufficient funds.

Simon called customer service again and was put on hold for 1 hour and 51 minutes before being hung up on.

“Yeah, it’s only $2, but when I think I’m one of many, many Virginia residents being (fleeced), I get really aggravated. … The whole thing was a pretty bitter experience,” Simon said, underscoring his experience of the service provider leaving him on hold rather than dealing with what he called a legitimate complaint.

“There certainly isn’t any incentive for the card provider to operate in a just, moral fashion,” Simon said. http://www.addictinginfo.org/2013/07/01/no-more-tax-refund-checks-in-v
irginia-tax-refunds-have-been-outsourced-costing-citizens-extra/#ixzz2XtlZa8V4

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