New Social Security Debit Cards
January 24, 2008
Individuals who are receiving Social Security payments will soon be introduced to a new debt card system that the Treasury Department plans to implement. It is hoped that the new debit cards will provide more safety and convenience for those using them. The implementation of debit cards is also seen as major way for the Treasury Department to cut costs.
The new debit card is called the Direct Express card. Beginning later this year, some states will begin using them and the program is expected to be nationwide by the end of the year.
Many banking experts and the Treasury Department itself agree that the new cards will result in significant savings and benefits to both the government and to recipients. Those who elect to use the new cards will have faster access to their cash and will also be able to avoid issues such as stolen checks. It is expected that there will be some cardholder fess associated with using the card.
Starting in 2005, the Treasury Department began a program to move most of its obligations toward electronic payments. The new Social Security debit card is a part of that effort.
Historically, debit cards issued by the government have been used for payments to hurricane victims via FEMA as well as used by many states as payment vehicles for unemployment benefits.