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Debit card option now available for Social Security recipients Tuesday, Jun 10, 2008 By Aaron Sadler Stephens Washington Bureau WASHINGTON - Arkansans who receive Social Security benefits may now opt to apply their money to a prepaid debit card, a choice praised as safe and convenient by the federal government. Skeptics on Monday wondered if anyone in Arkansas would sign up. "I would have to guess there would be some resistance to debit cards," said Herb Sanderson, head of the state's Division of Aging and Adult Services. "It's different. I guess it's the new wave, but we're talking about people that are 65 years old or more and are used to doing things differently." The new Direct Express debit card is targeted toward the 4 million Social Security and Supplemental Security Income recipients who do not have bank accounts. The card is now available in 10 states, including Arkansas. A nationwide rollout is expected this summer. Beneficiaries may choose to have their money stored on the MasterCard debit card, an alternative to carrying cash or using check-cashing facilities. Cardholders may access their money via banks or ATMs and use the cards at most retailers nationwide. The U.S. Treasury contracted with Comerica Bank, based in Dallas, to issue the card, which will contain only federal benefits. Like most bank accounts, money on the debit card is insured by the Federal Deposit Insurance Corp. There is no cost to sign up and no bank account is required for enrollment. Treasury officials said enrollment eliminates such issues as lost or stolen checks and mail delays because of weather, both problems for Social Security recipients who receive paper checks by mail. Beneficiaries with bank accounts are encouraged to sign up for direct deposit of their federal benefits, another alternative deemed safer than the paper checks. But the direct deposit option isn't very popular among senior citizens served by the White River Area Agency on Aging, said agency director Ed Haas of Batesville. So Haas doubts whether the debit card program in Arkansas will be successful. "They're used to getting a check, cashing it and having the money in their pockets," Haas said. "In fact, many of them pay their bills that way "To them, having a debit card or ATM card is kind of foreign." Sanderson said older Arkansans may have trouble understanding how to use debit cards. "If you've never had one before, do you know just how to use it?" Sanderson said. "Where do you go? Do you have to remember a (personal identification) number?" Social Security and SSI recipients may sign up for a card by calling (877) 212-9991 or visiting the Web site, www.USDirectExpress.com. |
