People should leave prison with a reentry card, not a “release” card.
Many, but not all, states provide a public benefit called “Gate Money” to those leaving prison. It ranges from $10 to $200 and is often released onto a plastic (fee-laden) prepaid card that can only be funded by the state’s Department of Corrections.
This public benefit was intended to assist people transitioning from prison to pay for immediate needs such as food, housing, hygiene, clothing, and transportation.
However, the current public benefit provided is not enough. It’s unreasonable to expect people leaving prison to reintegrate into society and start a new life with so little in their pocket.
The reality is that many formerly incarcerated people go long periods without income before securing employment. This lack of income makes it hard to pay for basic needs, such as food, hygiene products, clothing, transportation, and housing applications. Additionally, people on parole struggle to pay for parole conditions such as weekly drug tests and supervision fees.
It’s time for state governments to modernize how those leaving prison receive public benefits by investing in the reentry card infrastructure capable of powering a financial assistance program with spending controls when needed.
Reentry cards can be programmed in many ways. Here’s how one might work in practice …
Designing a Program
First, capital allocators must consider whether a state wants to restrict how public funds are spent. Many will use the money as intended, and some might not. Humans are not always rational economic actors.
For example, a person just released may receive financial aid on their reentry card, but it can only be spent in the “Food,” “Transportation," or "Medical " categories. A month later, the person automatically receives additional tranches of financial aid but with fewer, different, or no restrictions.
Reports built from real-time transactional data can highlight how a person utilizes their public benefit.
Second, capital allocators must consider whether financial aid should be linked to any milestones or actions known to be positively correlated with those who do not become re-incarcerated.
For example, a person who may have secured a job might receive extra financial aid as an unrestricted award. They may be repeated after being employed for 90 consecutive days.
The release of financial aid can be automated for community supervision agencies that engage in evidence-based verification.
Ultimately, states must conduct a cost analysis and make probabilistic projections about their return on investment. The fundamental question is how financial aid increases the odds of positive reentry outcomes and avoids future expenditures on re-arrest, re-sentencing, and re-incarceration.
Lastly, it’s essential to refine financial assistance programs responsibly. This can be achieved by having mechanisms to collect qualitative feedback from recipients.
Building the Infrastructure
After considering the design, one must consider implementing a financial assistance program.
Below are some areas to consider …
First, a person scheduled for release must be able to enroll and consent to receive financial assistance on a reentry card through a software program running on a tablet.
Things to consider at this step …
This requires business partnerships with those who understand the technology infrastructure and existing workflows used to operate a prison.
Any public benefit must comply with the Electronic Fund Transfer Act (EFTA).
Any legal document should be written as plainly as possible and available in alternative languages.
An audio reading of legal documents should also be made available for those who might not be able to read well.
This enrollment process is also an opportunity to promote financial education. For example, explaining how to make a “tap-to-pay” purchase, protecting your card’s PIN, or using digital wallets like Apple or Google Pay.
Second, a person should be able to open a basic financial account with direct deposit capabilities enabled. We have a specialized KYC program that makes this possible.
Things to consider at this step …
It’s well documented that people leaving prison may struggle to open a financial account. Many can’t produce a valid picture ID or provide “proof of address” documents that banks require to comply with federal anti-money laundering and counter-terrorist financing regulations.
State agencies can collaborate with technology companies to build compliant systems that automate identity verification so that basic financial accounts can be instantly opened for a person.
Basic financial accounts enable a person to receive direct deposit payments from future employers, collect government benefits, and access the ACH system—all things required to transact and participate in the modern economy.
Third, a person must be able to create a PIN for their reentry card. This requires diligent systems design to protect people’s data and comply with PCI-DSS.
Things to consider at this step …
Industry data-sharing standards like those published by IJIS should be consulted when planning integration with existing technology infrastructure.
Transactions made with a card lacking a PIN may not be processed by merchants, rendering the card useless for the person.
Cards should be enabled for tokenization. This means they can be used in digital wallets like Apple or Google Pay.
Fourth, cards must be mailed to prison facilities in ways that don’t reveal sensitive information or are subject to 3rd party abuse.
Things to consider at this step …
This can be achieved through event-based notifications that can control whether or not a card is activated.
Card mailers must be properly formatted to ensure it is successfully delivered.
It is also essential to make it easy for DOC staff. It’s well known that prisons face staffing shortages, and existing release workflows should not become more complicated.
Fifth, reentry cards should be programmatically funded. They should not require any manual work by administrative staff.
Things to consider at this step …
Cards should only be activated once a person is released.
Cards should be automatically funded when they are used for the first time.
Spending controls should be automatically revised and instant.
Lastly, how released people register their reentry card and access support must be simple and secure.
Things to consider at this step …
People should be able to access their accounts online with alternative multi-factor authentication measures that don’t rely on a one-time passcode sent via a text message.
A person should be able to call and get help from a person trained on the unique circumstances of the person.
A person should be able to manage their account and perform basic functions like re-setting a PIN, requesting a new card, temporarily blocking a card, or disputing a transaction.
A person should be able to view easy-to-read transactions that are categorized.