Social Security Plans To Offer Debit Cards
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Saturday, January 5, 2008
The Treasury Department said yesterday that it would offer Social Security payments on debit cards and that it hopes millions of people who do not have bank accounts will use the new service.
Treasury officials said Comerica Bank will offer the Direct Express debit cards. Officials said Comerica was selected because of its experience in handling such cards for benefit recipients in various state-run programs.
The Treasury Department's Financial Management Service estimated that 4 million recipients of Social Security and Supplemental Security Income, benefits paid to the poor, do not have bank accounts.
Judith R. Tillman, commissioner of the Financial Management Service, said that if all federal check recipients who do not have bank accounts signed up to use the cards, it would save about $44 million per year in printing and mailing costs at little or no cost to the cardholders.
"We ultimately would like to see an all-electronic Treasury -- with the security, efficiency and cost savings that would entail," Tillman said in a written statement.
Officials said they would introduce the card in the spring. Those who decide to use the cards will have their Social Security payments deposited in their Direct Express card accounts. Cardholders will be able to get their money at ATMs and banks, the Treasury Department said.
