Maine is about to join more than 30 other states in changing the way unemployment benefits are distributed. Instead of paper checks, benefits will soon be distributed through debit cards linked to private bank accounts set up by the state. But the unemployed can still opt to have benefits deposited directly into their bank accounts. And that might be the best option for avoiding fees.

Currently, Mainers claiming unemployment can ask the state to mail them a paper check or to deposit the money directly into their bank account. Over the next few months, the state Department of Labor will phase out the paper check option and introduce the Maine Automated Payment, or MAP, Card.

"Folks will still have two options to receive their unemployment benefits: using the automated payment card, or debit card, we call it the MAP card, or they can get it thought direct deposit," says Department of Labor spokesman Adam Fisher. "The card is issued by Chase bank and money will be deposited into the individual's account within 24 hours of their weekly benefit claim being approved. They have access to it either using it as a debit card at a retailer. They can also go to any bank that accepts the Visa card or has the Visa logo on it. They can do a withdrawal from one of those banks at no cost."

Fisher says the state is moving to the debit card system because there are a few problems with paper checks: some unemployed people don't have bank accounts and there's often confusion associated with changes of address. "Because of security reasons, we never have those checks forwarded to the new address. If the person moves, the way our security works is it gets sent back to us -- hundreds of times, we're seeing, a week."

Fisher says the cards will be issued by JP Morgan Chase at no cost to the user or to the state. But there are potential fees associated with using the card, and the bank can charge fees to users and retailers.

Consumers' Union, the California-based nonprofit that publishes Consumer Reports magazine, says card users need to be aware of fees associated with overdrafts, balance inquiries, and pin-based transactions at retail stores.

"It can be kind of dicey -- it all depends on how the contract is worked out between the state and the issuing bank," says Michelle Jun, staff attorney for Consumers' Union. "There can be fees, especially, to withdraw the funds. Often times the bank has an in-network ATM system so you can withdraw funds, if not once but a couple times per deposit, without incurring a fee but if you were to go to the ATM say a third or fourth time you could be out an additional $1.50."

The new Maine system will allow one free withdrawal per deposit period, according to the Department of Labor. Fisher says card users can limit fees and surcharges by requesting cash when they make a purchase. At least one unemployed Maine resident has voiced a concern that the state will monitor how people are spending their unemployment dollars. Fisher says that will not happen.

"The state will not see what type of transactions individuals use their debit cards for," he says. "If there's any concern on the part of claimants about that issue, we want to make sure people know that they do have that direct deposit option." Fisher offered no comment on whether JPMorgan Chase bank or Visa will observe card users' spending habits.

It's too soon to tell how many unemployed Mainers will elect to use the debit card system to obtain their benefits. Maine's unemployment rate was 8.3 percent in December, and Fisher says there are currently about 36,000 people statewide collecting unemployment.

The weekly benefit amount is based on earnings during a set period prior to losing one's job. The maximum amount a person can receive is $356 dollars a week, plus $10 per dependent per week.

The first Maine Automated Payment cards will be issued in April. JP Morgan Chase bank declined to comment for this story, referring calls to the Maine state government.