|
U.S. Treasury Introduces Direct Express® Debit Card
for Social Security Payments
For the first time, four million Americans without bank accounts will have a safer, more convenient alternative to paper checks
Washington, D.C. (June 10, 2008) – The U.S. Department of the Treasury’s Financial Management Service (FMS) has announced that a prepaid debit card for Social Security payments and other federal benefits is now available. The Direct Express® Debit MasterCard® card – designed as a safe, convenient alternative to paper checks that people without bank accounts may choose – is currently being introduced in 10 states, and will be rolled out nationwide this summer.
“People without bank accounts now have a user-friendly, practical alternative to paper checks for their monthly federal benefit payments,” said FMS Commissioner Judith Tillman. “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.”
The Direct Express® card provides another option to choose from for federal beneficiaries who do not have a bank account, but are looking for a no-cost or low-cost alternative to using check cashing facilities and carrying large amounts of cash. Unlike other prepaid debit cards, the Direct Express® card offers cardholders free 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 thousands of ATMs and retail locations.
Treasury has engaged a financial agent – Dallas-based Comerica Bank – to issue this nationally available card exclusively for payment of federal benefits. People currently receiving Social Security or Supplemental Security Income (SSI) checks in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas have received information about the card. People may sign up for the card by calling toll-free 1-877-212-9991 or visiting www.USDirectExpress.com.
Advantages of the Direct Express® card
About 4 million Social Security and SSI recipients do not have bank accounts, and have had to depend on paper checks for their monthly payments. The Direct Express® card offers a number of features that make it:
Public education campaign
A robust public education campaign will accompany the launch of the card and will promote debit card literacy among likely users, reaching them through print and Web materials, public service announcements, direct mail and partner organizations. Treasury has experienced success with similar education initiatives, including its Go Direct® campaign, which encourages federal benefit recipients with bank accounts to direct deposit their federal benefit payments. The campaign emphasizes that direct deposit is much safer than a paper check.
-30-
About Financial Management Service
The Financial Management Service (FMS) provides centralized payment services to federal agencies and operates the federal government's collections and deposit systems. FMS oversees a daily cash flow of more than $60 billion, provides government-wide accounting and reporting services, and manages the collection of more than $3.7 billion per year in delinquent debts owed to the federal government. FMS also collects
more than $3.1 trillion per year in government revenues and disburses more than $1.6 trillion to more than 100 million individuals through social security and veterans' benefits, income tax refunds and other federal payments. For more information, go to www.fms.treas.gov.
About Comerica Bank
Comerica Bank is a subsidiary of Comerica Incorporated, a $67 billion financial services company headquartered in Dallas, Texas. Comerica coordinates 25 debit card programs for 13 states, servicing more than two million cardholders. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states.
About MasterCard®Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes more than 18 billion transactions each year, and provides analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro®and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories.
Click here to access downloadable sound bites.
|
 |
 |
 |
 |