To avoid losing face, Centrelink recipients using cash-free benefits cards affixed the stickers to the cards.
The card, which can only be used in approved stores, is being piloted in the Kalgoorlie area of Western Australia and will be rolled out throughout the country.
The Visa debit card allows welfare recipients to buy food, clothing and pay their bills, but it cannot be used to withdraw cash or buy cigarettes and alcohol.
As a mother of four, resident Sylvia Asoya (Sylvia Asusaar) told ABC News, she was ashamed of the new payment.
She worries that shop assistants and other customers will be biased when she buys food with welfare cards, which are known to have Indue's logo, a company that distributes welfare cards.
So, like many people, the mother posted a sticker on the card to cover up its true source.
Under the plan, 80% of Centrelink benefits go to the card. Another 20% is sent to the recipient's designated bank account.
The Social Services Department's plan has been heavily opposed, with many saying that the lack of cash cards has a negative impact on mental health, causing them to feel humiliated and embarrassed.