Social Security to Come via Debit Card

For some Social Security recipients, payments will come in the form of a debit card. The SSA is hoping to save money and reduce fraud by offering debit cards to a select group of recipients. Instead of receiving a check, these people can just start spending or taking cash out at the ATM. No lost mail, no trips to the bank, no problem.

The main challenges will be education for older users and managing fees. However, fees will be substantially lower for people who do not have bank accounts and have relied on check cashing or payday loan establishments to get their money. This is part of a larger Treasury Department effort to get with the times and move money electronically (see GoDirect.org).

[via Your Money Matters Podcast (MP3 File)]

Further reading:

• Using Debit Cards: Choose Debit or Credit?
• More Personal Finance Podcasts
• How Payday Loans Work