Roll-Out of Direct Express Debit Card for Social
Security Recipients Reaches West Coast
In September, nearly two million federal benefit
recipients in 12 states will receive information about new check
alternative
Sept.
4, 2008 - The check is in the mail – your Social Security check, that
is. But for nearly two million recipients in a dozen Western states it
may be about their last to be delivered by the postal service. Since
June, the U.S. Treasury has been rolling out the Direct Express Debit
MasterCard card as a new way for senior citizens and other recipients
to receive their benefits.
The program roll-out to the Western states means
recipients will receive information about the new prepaid debit card
option for federal benefits with their monthly checks in September.
The U.S. Department of the Treasury’s Financial
Management Service (FMS) announced on June 10 that the prepaid debit
card for Social Security payments and other federal benefits was
available.
That announcement said, “The Direct Express Debit
MasterCard card – designed as a safe, convenient alternative to paper
checks that people without bank accounts may choose – is currently being
introduced in 10 states, and will be rolled out nationwide this summer.”
This introduction, which follows others earlier in
the summer, goes to Social Security recipients in Alaska, Arizona,
California, Colorado, Hawaii, Idaho, Nevada, New Mexico, Oregon, Utah,
Washington, and Wyoming.
The Direct Express card is a new option for federal
beneficiaries who do not have a bank account, but are looking for a
no-cost or low-cost alternative to using check cashing facilities and
carrying large amounts of cash. There is no sign-up fee and no bank
account or credit check is required to enroll.
SIGN UP Information:
Senior citizens, people with disabilities
and other Social Security and Supplemental Security Income (SSI)
recipients may sign up for the optional card by calling
toll-free 1-877-212-9991 or visiting
http://www.usdirectexpress.com/.
Cardholders can make purchases, pay bills and get
cash at thousands of ATM and retail locations nationwide.
Treasury has engaged a financial agent -
Dallas-based Comerica Bank - to issue this nationally available card
exclusively for payment of federal benefits.
KEY Numbers for Western States:
● Nearly two million Social Security and
Supplemental Security (SSI) recipients in a dozen Western states, mostly
senior citizens and people with disabilities, will receive information
about the new Direct Express card with their monthly checks in
September.
● About 4 million Social Security and SSI
recipients nationally (approximately 600,000 in the Western states) do
not have bank accounts and, until now, have had to rely on paper check
payments.
● About 10.3 million senior citizens, people with
disabilities and others still rely on paper checks for their Social
Security and SSI payments.
● Last year, 700,000 Social Security and SSI paper
checks were reported lost or stolen and the payments had to be reissued.
Direct Express Card Facts:
● Safe: The Direct Express card eliminates the
risk of lost or stolen checks, giving people access to their money
without the need to carry large amounts of cash. The cards are
PIN-protected and funds are FDIC-insured.
● No- or low-cost: Features built into the Direct
Express card are aimed at reducing or eliminating the cost of using the
card. There is no cost to sign up for the card and no monthly fee.
● Convenient: Cardholders can make purchases and
get cash back at no cost wherever Debit MasterCard(R) is accepted. The
Direct Express card can also be used to pay bills over the phone and
internet and to get cash at ATMs.
Key Questions and Answers from
U.S. Department of the Treasury
What
is the Direct Express® card?
— The Direct Express® card is a prepaid debit card
offered to Social Security and Supplemental Security Income check
recipients who wish to receive their benefits electronically. The debit
card offers the convenience and security of using electronic
transactions to spend and access your money rather than using cash for
purchases. You do not need to have a bank account to sign up for the
card. There is no credit check or minimum balance requirement.
How does the Direct Express® card work?
— When you sign up to receive your Social Security
or Supplemental Security Income benefits on the Direct Express® card,
you will receive your payment every month without having to worry about
cashing your check, losing your check, or having it stolen. Instead of
receiving a check, your money will be automatically deposited to your
Direct Express® card account on your payment date. You can use your card
to withdraw cash from Automated Teller Machines (ATMs), make purchases
at stores that accept Debit MasterCard®, and get cash back when you make
those purchases. You can also use your debit card for online bill pay
and to buy money orders at the U.S. Post Office.
Will my Social Security and Supplemental
Security Income benefits be safe?
— Yes, with the Direct Express® card, your money
is FDIC-insured up to the maximum legal limit. In addition, the consumer
protections required by Regulation E (12 CFR 205) and MasterCard® Zero
Liability (exceptions may apply), which protect you against unauthorized
use of your card when promptly reported, apply to your debit card
account. Finally, if your card is lost or stolen, it will be replaced.
How is the Direct Express® debit card different
from a credit card?
— You can only use your Direct Express® debit card
if you have money in your account. The full amount of your purchase is
debited from the card account at the time of the purchase or very soon
thereafter. The Direct Express ® card does not provide a line of credit.
With a credit card, you use the card to borrow money to make purchases
and pay back the credit card company in part or in full every month.
What are the benefits of the Direct Express®
card?
— The Direct Express® card gives you the
advantages of direct deposit even if you don't have a bank account,
including: ● It's Safe: No need to carry large amounts of cash and no risk
of lost or stolen checks. ● It's Easy: Your money is automatically deposited to your card
account on your payment day each month. You won't have to wait for the
mail to arrive. ● It's Convenient: You can make purchases anywhere Debit
MasterCard® is accepted and get cash at retail locations, banks and
credit unions, and ATMs throughout the world.
Sept.
4, 2008 - The check is in the mail – your Social Security check, that
is. But for nearly two million recipients in a dozen Western states it
may be about their last to be delivered by the postal service. Since
June, the U.S. Treasury has been rolling out the Direct Express Debit
MasterCard card as a new way for senior citizens and other recipients
to receive their benefits.
