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How can I automate recurring cash payments to an individual?

Personal Finance & Money Asked by RADA on May 11, 2021

(US-based question)

I currently give cash to several people on a regular basis: small cash gifts to help out unemployed relatives, tutors for my child, neighbors’ children doing some yard work, and so on. The amounts range from $20 to $100/week. Is there a way to fully automate this?

Requirements:

  1. Recipient can easily access funds (withdraw cash at an ATM or pay for purchases anywhere a regular debit or credit card is accepted)
  2. Recipient cannot overspend (if I give them $50/week, they cannot spend more than that)
  3. Funds are automatically loaded from my bank account
  4. Low upfront or monthly fees and no hidden fees (inactivity fees, low balance fees, etc)

To remain practical, the solution must not add the burden of income/payroll taxes and/or reporting to tax/labor authorities (as compared to cash – I am well aware that tax and labor laws apply to cash so let’s not belabor that).

Thanks in advance for your help!

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