Social Security launches prepaid debit card plan
Social Security launches prepaid debit card plan

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From Staff Reports

Published: June 12, 2008

Oklahoma is one of 10 states where the U.S. Treasury is launching a prepaid debit card option for Social Security and Supplemental Security Income recipients.

The program, which allows recipients to load their government payments on the card, began this week in Oklahoma and nine other states and will be rolled out nationwide this summer.

The Treasury estimates that nearly 4 million Social Security and SSI check recipients do not have bank accounts, placing them at greater risk of check delivery delays due to poor weather, national or local emergencies, and other check-related problems such as lost or stolen checks.

Last year, 700,000 Social Security and SSI paper checks were reported lost or stolen and the payments had to be reissued. In Oklahoma, seniors and others rely on more than 140,000 Social Security and SSI paper check payments each month.

Sean Voskuhl, associate state director for AARP, said that organization likes the debit card option, particularly for the protection it could offer for some types of fraud.

"We are concerned about potential fees that beneficiaries would have to pay like ATM fees, and would oppose any proposal to make the debit card mandatory for all beneficiaries,” Voskuhl said.

What are the details?

The Direct Express card offers cardholders access to their money. There is no sign-up fee, and no bank account or credit check is required to enroll. Cardholders can make purchases, pay bills and get cash at automatic teller machines and retail sites.

"People without bank accounts now have a user-friendly, practical alternative to paper checks for their monthly federal benefit payments,” said Judith Tillman, commissioner of the Treasury's Financial Management Service.

"We know that many check recipients are eager for a card-based option for their federal benefits, and we are confident the Direct Express card will provide many Americans an important entry point to the financial mainstream.”

Anyone receiving Social Security benefits may sign up for the card by calling the toll free number: (877) 212-9991 or visiting www.USDirectExpress.com.