Getting stagnant is never a good thing, and even though government programs like Social Security seem to be always the same, the reality is that those in charge of benefits in the US do try to modernize the program every once in a while, to ensure that they keep up with the times and that beneficiaries are given the best chance to get their payments on time. We usually think of beneficiaries of Social Security as just retirees, but there are 70 million total that receive some kind of payment from the state and it would be a lot easier for them to get a Direct Deposit instead of a check.
The traditional check system for receiving Social Security payments is a remanent of a time when no one had a bank account, and the government needed a way to distribute benefits. Although most people nowadays do have a bank account, there are still plenty of beneficiaries, especially those that are among the poorest or the oldest, aka, the most disenfranchised, that still do not have access to regular banking, and so the system has continued to work the same way for years. But as these segments of the population get smaller and the banking industry makes it easier for everyone to be in it, the Social Security Administration (SSA) is making changes to improve the ways their distribution of checks work.
The new way to get your Social Security payment in the US
For now, the new system will only work for Social Security and Supplemental Security Income (SSI) beneficiaries, but in the future this system could be expanded to accommodate other beneficiaries. The system is based on the Direct Deposit method that was already in place. This system means that beneficiaries can just provide a bank account and get their benefits directly deposited into it whenever they are available, allowing them to receive them quicker and without any check misplacement.
But since not everyone is eligible to get a back account the SSA had to devise another way to help those that still want the more convenient method of receiving benefits to get them on time without them needing to qualify, and that is how the Direct Express card was created.
The card works similarly to how a SNAP EBT card works, and is a secure and fast method for accessing monthly funds. As the SSA explains “The Direct Express® card is a prepaid debit card you can use to access your benefit payments. And you don’t need a bank account. With the Direct Express® card program, we deposit your federal payment directly into your card account. Your monthly funds will be available on your payment day. You can use the card to make purchases, pay bills, or get cash at thousands of locations. Most transactions are free. The Direct Express® card is both safer and more convenient than paper checks. Anyone receiving Social Security benefits or SSI payments can enroll, even if they don’t have a bank account. You no longer have to wait for the mail or worry about lost or stolen checks.”
For those that are worried about security with this card, we all know that these benefit cards are not always the most secure, the SSA has ensured that it is quite secure, and as long as you do not give the PIN number to anyone else, it should be just as secure as a regular bank card, which, considering it is in partnership with Mastercard, it is.
Since this card is meant for those who do not qualify for regular bank cards or banking, there are no fees whatsoever associated with this card. There is no sign-up fee and no monthly account fee that could set anyone back or could mean that someone gets their benefits garnished.