EDD Money Network card charging 20% "tip hold" - can't even buy food now

You're absolutely right to be upset about this. The Money Network cards implement what's called an "authorization hold" which is common with debit/credit cards, but the 20% for restaurants is excessive. Here's what's happening: when you swipe at any restaurant (even fast food), the payment processor automatically adds 20% to account for potential tips. Since fast food rarely has tips, this is particularly frustrating. To avoid this: 1. Always keep at least 25% extra funds on your card when dining out 2. Use self-checkout at grocery stores instead of restaurants when funds are low 3. Transfer larger amounts to a personal bank account (this is fee-free) You can file a complaint with the Consumer Financial Protection Bureau (CFPB) about these practices. The hold should drop off after 24-72 hours, but that doesn't help when you need to eat now.

OMG SAME THING!!!! I was at Chipotle and had $43 and tried to buy a $35 bowl and got declined!!!! The cashier looked at me like I was trying to scam them and I was soooo embarrassed I wanted to DIE. Like we're already struggling with unemployment and now we gotta deal with this??? smh

they do this at ALL restaurants not just fast food. its a preauthorization hold for tips. bank of america cards did this too but maybe not as much. the money comes back but u need to wait 3-4 days usually. i think its normal but SUPER annoying when ur on UI and every dollar counts. i just transfer all my $ to my credit union account as soon as i get paid now avoid the whole mess

This is actually a standard practice with nearly all debit and credit cards at restaurants - it's not unique to Money Network. The difference is that Bank of America's system would often approve the transaction anyway if you were just slightly over your available balance, while Money Network strictly enforces the authorization hold. The best solution is to transfer your EDD funds to your personal bank account as soon as they arrive. You can do this for free through the Money Network app or website. For those who don't have a bank account, consider opening one - many credit unions offer free checking accounts with no minimum balance requirements. Until then, carry a small cash reserve for food purchases when your balance is low. And yes, these holds typically clear in 1-3 business days, but that doesn't help when you need to eat today.

has anyone else noticed they also charge ATM fees now?? i swear they're just trying to squeeze every penny out of people who are already struggling. its criminal if you ask me...

I've been having nightmares with these Money Network cards too. Been trying to reach EDD for days to complain but can't get through their phone system. Always "too many callers, try again later" then disconnects. Has anyone found a reliable way to actually speak to an EDD representative about these card issues? I found a service called Claimyr that helps you get through to EDD agents - used it last week and finally spoke to someone after weeks of trying. They connect you to the actual EDD line (not a third party) and notify you when it's your turn. Saved me hours of redial frustration. Their video demo shows how it works: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km. Their site is claimyr.com if anyone needs to actually talk to EDD about these card issues.

This entire Money Network card situation is one more example of the state cutting corners at claimants' expense. They switched from BofA to save money, but passed all the costs to us. Consider this: the state SAVES money while unemployed people pay fees to access their own benefits. It's disgusting. I've contacted my state representative about these predatory practices. The more people who complain, the more likely something will change. These authorization holds aren't illegal, but they're certainly predatory when applied to unemployment benefits cards where people are already financially vulnerable.

Pro tip for everyone: Transfer your full benefit payment to your personal bank account IMMEDIATELY when it hits your Money Network card. You can set up automatic transfers in the Money Network app. No fees for transfers, and then you avoid all these restaurant holds and ATM fees. Been doing this since they switched from BofA and haven't had a single issue since. Another workaround for restaurant purchases: if you know you're running low on funds, ask the cashier to process it as a final sale with no tip option. Many places can do this if you explain the situation. Doesn't always work, but worth trying.

This is absolutely infuriating! As someone who just started dealing with these Money Network cards after being on the old BofA system, I had no idea about these authorization holds. It's unconscionable that they're essentially holding our own money hostage when we're already struggling financially. I've been reading through everyone's suggestions and it sounds like the immediate transfer to a personal bank account is the way to go. But what about people who don't have bank accounts? Are there any other options for them, or are they just stuck dealing with these predatory practices? Also, has anyone tried disputing these holds directly with Money Network? I'm wondering if there's any way to get them to adjust their policy for unemployment benefit cards specifically, since this isn't regular spending money - it's government assistance that people depend on for basic necessities.