Social Security Disability Recipients To Get Debit Card

Brent Adams

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The Treasury Department has made plans to introduce a prepaid debit card for recipients of Social Security, including those receiving disability, in an effort to provide benefits payments that are safer and cheaper.

The Direct Express debit card is to be introduced in a handful of states in the coming spring and rolled out by the end of the coming summer. Comerica Inc.'s Comerica Bank has been selected as the program's card issuer, which is targeted at recipients of Social Security and Supplemental Security Income who don't have a bank account.

According to Treasury officials and banking experts, the card could mean significant cost savings for both recipients of benefits and the federal government. Those who sign up for the card will also gain faster access to their money and avoid some security problems, such as stolen checks.
However, there are some cardholder fees associated with Direct Express, and a significant education effort could be necessary for users to accept and understand the card.
The card is part of a wider effort by the Treasury to make a move to electronic payments. The department began its Go Direct campaign in 2005. The program is designed to encourage recipients of benefits with bank accounts to switch to direct deposit.