SOCIAL SECURITY DEBIT CARD:
For millions of Americans, accessing their
>> Social Security benefits is now just a card swipe away. A new debit
card
>> being offered by the Treasury Department gives nearly 4 million
>> recipients
>> who have no bank accounts an alternative to paper checks that they must
>> cash, usually at a price. The new debit card, issued by Comerica Bank,
>> was
>> quietly marketed to nearly 3.5 million recipients of Social Security
and
>> Supplemental Security Income (SSI) this spring. It's now available to
any
>> benefit recipient through enrollment at www.usdirectexpress.com.
States
>> already load child support payments and unemployment benefits onto
debit
>> cards. The federal government has used prepaid debit cards, too, for
>> disaster relief aid. But the Social Security debit card is the largest
>> push to date to switch from costly paper checks to electronic payments.
>> "Our goal is to move to 100% electronic payments," says Judy
Tillman,
>> commissioner of Treasury's Financial Management Service. "It's
safer and
>> more reliable for delivery" of funds.
>>
>> The new debit card will eliminate the need for
consumers without bank
>> accounts to use costly check-cashing services, the Treasury Department
>> says. It will also save the government money. The Treasury estimates
that
>> if all 4 million recipients without bank accounts signed up for the
card,
>> it would save $42 million a year. As with any other debit card, using
it
>> won't always be free. For instance, holders will get one free ATM
>> withdrawal per month. After that, they'll be charged 90 cents for each
>> withdrawal. A fee of 75 cents per month also applies if card holders
want
>> paper statements mailed to them. Still, the fees are among the lowest
in
>> the industry for such services, says Nora Arpin, director of government
>> electronic solutions for Comerica. About 80% of the 57.3 million Social
>> Security and SSI recipients have their benefits directly deposited into
>> their bank accounts. The challenge will be to get the remaining
>> consumers
>> to switch from checks to electronic payments such as direct deposit or
>> the
>> new debit card. The card "might be confusing if they're not savvy
about
>> electronic payments and don't have (experience with) a bank
account,"
>> says
>> Chris Allen, a director for Hitachi Consulting. [Source: USA
Today Cathy
>> Chu article 10 Jun 08 ++]