NY unemployment direct deposit with Chime no longer working? What to do?

ya i noticed that too last week. something about 'non traditional banking platforms' not being accepted anymore. super annoying!!

This is a recent change to the NY unemployment system. Starting May 2025, NYSDOL no longer accepts direct deposits to certain online/mobile banking platforms including Chime, CashApp, and several others. They're requiring traditional bank accounts now due to increased fraud prevention measures. You have three options: 1. Open a traditional bank account (most credit unions have free checking) 2. Use the NY Direct Payment Card (works like a debit card) 3. Set up direct deposit with a qualifying bank you already have If you need your payment quickly, I recommend selecting the NY Direct Payment Card option for now which you can set up immediately in your online portal. Then you can switch to a traditional bank account later if you prefer.

i just went thru this EXACT same thing. was using chime for MONTHS then suddenly couldnt anymore. so frustrating!!! i called them and they said something about 'security requirements' but it just sounded like BS to me. ended up just taking the debit card option

The NY Department of Labor changed their direct deposit policies effective May 1, 2025. They now require accounts from regulated banking institutions that meet certain security protocols. Unfortunately, many popular online banking platforms including Chime no longer qualify. If you need to speak with someone directly about this issue or need help switching your payment method, I'd recommend trying Claimyr (claimyr.com). I was in a similar situation and needed to speak with an agent immediately about my payment options, but couldn't get through on the regular line. Claimyr got me connected to an NYSDOL rep in about 20 minutes instead of spending days trying. They have a video showing how it works: https://youtu.be/Rdqa1gKtxuE The agent confirmed that the NY Direct Payment Card will be mailed within 7-10 business days after you select that option. Any payments processed during that time will be loaded onto the card once activated.

this is ridiculous! i dont trust traditional banks AT ALL and now theyre forcing us to use them?? i bet the big banks lobbied for this change so they could get more of our money through fees. the system is RIGGED against regular people!!!

Just wondering... has anyone tried linking a Chime account through Plaid instead of entering the routing/account numbers manually? That worked for me with another government payment system, though I haven't tried it with unemployment yet.

the debit card option isnt too bad actually. u can transfer money from it to whatever account u want once u get it. thats what im doing - just moving it to my chime account after

I checked the NYSDOL website and this change was actually announced back in March 2025 through their newsletter and account portal notifications. They're requiring FDIC-insured banks now as part of their fraud prevention program. For those concerned about traditional bank fees, consider looking into credit unions. Many offer completely free checking accounts with no minimum balance requirements and have the required FDIC insurance equivalent (NCUA).

Update: I called NYSDOL this morning and got through after trying for hours. They confirmed everything everyone said here. I've opted for the direct payment card for now, and they told me it should arrive within 7-10 business days. Any pending payments will be loaded onto it once I activate it. Thanks everyone for your help with this!