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By Dale Walton, EFT Strategy Division

Fifteen months after introducing a low-cost prepaid debit card option for Social Security check recipients, more than 600,000 beneficiaries have signed up for the Direct Express® Debit MasterCard® card. Also, according to a recent survey of cardholders, 95 percent say they are satisfied with the card and 86 percent say they would recommend it to family members or friends who receive a federal benefit payment.

In a recent press release recognizing the one-year anniversary of the program, FMS Commissioner Dave Lebryk said “millions of senior citizens, people with disabilities, and other Americans who lack access to traditional banking services now have a safer, more convenient way to receive their federal benefit payments than paper checks. In its first year, the Direct Express® card has helped to bring hundreds of thousands of Americans into the financial mainstream. With this card, people now have a lower-cost alternative to visiting check cashing facilities and carrying large amounts of cash.”

The Direct Express® card was designed for the approximately 4 million Social Security and Supplemental Security Income (SSI) recipients without bank accounts. Those individuals who have a bank account but primarily rely on alternative financial service providers, such as check cashers, can benefit from the Direct Express® card.

Cardholders can make purchases, get cash, and pay bills. No bank account or credit check is required to enroll, there are no sign-up fees, no monthly fees or overdraft charges, and most services are free. Some fees for optional services may apply.

Among cardholders who say they are satisfied with the card, eight in 10 cite convenience, safety, or immediate access to money as reasons they are satisfied.

More convenient: More than half of satisfied cardholders say they like the convenience the card offers. Cardholders can make purchases, get cash, and pay bills – there’s no need to go anywhere to cash or deposit a check.

Safe: One in five satisfied cardholders stress security as a reason for their satisfaction. If a Direct Express® card is lost or stolen, it will be replaced. In addition, the card accounts are insured by the Federal Deposit Insurance Corporation (FDIC) and can be used for signature and Personal Identification Number (PIN) transactions. With the debit card, there is no need to carry large amounts of cash, and no risk of losing a check or having a check stolen.

Immediate access to money: One in three satisfied cardholders say they like the card because it provides immediate access to their money on payment day. There is no more waiting for a check to arrive in the mail.

FMS is taking steps to ensure people have information through ongoing public service announcements, the Direct Express® card Web site, cardholder materials, and distribution of information to national and local organizations involved in FMS’s efforts to increase electronic payments.

FMS’s financial agent – Dallas-based Comerica Bank – issues this nationally available card exclusively for payment of federal Social Security benefits. Americans currently receiving Social Security or SSI checks may sign up for the card by enrolling through Comerica Bank by telephone or website, or talking to their local Social Security office.

Future plans include increasing Social Security and SSI volumes through additional marketing, and expanding the program to other benefit-paying agencies.

For more information on Direct Express®, contact Dale Walton at 202-874-7118 or dale.walton@fms.treas.gov.

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