Social Security to use debit cards

Social Security recipients in South Dakota and other states now have to make a decision: paper or plastic?

The United States Treasury has introduced a new plan for beneficiaries without bank accounts. The new Direct Express debit card will allow checks to be transferred into an account, just like direct deposit.

The new Mastercard program is expected to lessen the amount of lost or stolen Social Security checks. The U.S. Treasury estimates that nearly 700,00 checks were lost or stolen last year.

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"We've been dealing with lost and stolen treasury checks for decades," said Judy Tillman, commissioner of treasury's financial management service. If a check is lost, Tillman said, a recipient must contact the Social Security Administration. The Social Security Administration then contacts the treasury and the treasury mails a replacement check.

"It still takes several days," Tillman said. "In the meantime, a person who, in most cases, really needs those funds is sitting there waiting for the mail carrier."

Social Security recipients may sign up for the new program when they receive their next check; however, they are not obligated to get a new debit card.

Sam Wilson, associate state director for advocacy at AARP South Dakota, said the group is supportive of the new program and will try to help members of the organization and the public by providing as much information as possible.

The debit card program also will save taxpayers money, Tillman says. The treasury doesn't have to pay any costs to the sponsoring bank, Comerica, and it costs 88 cents more to issue a check than to issue an electronic payment, Tillman said.

Wilson said the card provides recipients with a huge advantage over theft and loss, and she doesn't see a downside or drawbacks to the card. There at no overdraft charges or ATM fees.

Tillman said there are a few option fees, such as 75 cents a month for a paper copy of the transaction to be sent to a home.

Beneficiaries can set up an account at www.usdirectexpress.com or call 877-212-9991.