As a result, US citizens applying for benefits on or after May 1, 2011, will receive their payments electronically, while those already receiving paper cheques will need to switch to direct deposit by March 1, 2013.
Moreover, benefit recipients have the option of direct deposit into a bank or credit union account of their choice or into a Direct Express Debit MasterCard card account.
The Direct Express card was designed for roughly 4 million Social Security and Supplemental Security Income (SSI) recipients in the US who lack access to basic traditional banking services. The card aims to provide a lower-cost alternative to visiting cheque cashing facilities and carrying large amounts of cash. Cardholders can make purchases, withdraw cash and pay their bills. No bank account or credit check is required to enrol; there are no sign-up fees, monthly fees or overdraft charges.
Over 1.5 million beneficiaries have signed up for the Direct Express card since it was introduced in 2008.
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