I posted over the weekend about a study showing that the vast majority of those who receive their Social Security benefits via government issued debit card are pleased with the arrangement. Susan Tompor writing in the Detroit Free Press writes about the downside of these debit cards -- fees and costs -- and of ways of avoiding them. If you deal with those who use these debit cards, note in particular the areas below that I have bolded and there's one part so important and so little known that I have put it in a larger font:
A study released last week showed that 95% of cardholders are satisfied with the Direct Express card. About 93% would recommend the card to someone else. More than 2 million active cardholders receive Social Security retirement benefits and Supplemental Security Income benefits, as well as other benefits.
Thankfully, the government's debit card does not have the outrageous fees of other prepaid debit-card plastic that you might pick up off the shelf at the store.
But it doesn't mean consumers are completely off the hook.
One free ATM withdrawal is allowed each month on the Direct Express Debit MasterCard. Additional ATM withdrawals are 90 cents.
To get one free ATM withdrawal, consumers must go to one of about 60,000 ATMs in the network. That network includes ATMs at Comerica Bank, Charter One, PNC Bank, Privileged Status, Alliance One, the MasterCard ATM Alliance and MoneyPass.
Plenty of bank names, though, aren't in the network. And it could cost up to $3 or so a pop to get access to your Social Security money at some ATMs -- no free withdrawals -- if you go out of the network. ...
A consumer with the Direct Express card could go to any bank or credit union that displays the MasterCard acceptance mark and get cash from a teller -- not an ATM -- free of charge. ...
There is a $1.50 fee to transfer money from the card to a personal bank account. ...
There's a 75-cent monthly fee to get a paper statement. ...
One free replacement of the card is allowed each year. After that, there is a $4 fee to replace the card. If you wanted to expedite the replacement, there's a $13.30 fee, too.
4 comments:
The cards also can become a bureaucratic nightmare when dealing with issues of non-receipt of payments. I doubt if 90% of SSA employees would advise a relative to utilize these debit cards.
Then they need to get a bank account, which they should be doing anyway.
Not everyone is allowed to open a bank account by the banks. These are folks who may have had accounts closed due to insufficient funds, etc -- and no money to obtain ID, travel to the free ATM, etc.
re: 10:11am
Actually, nonreceipts aren't really the issue. Once the check goes onto the claimant's card, any issue related to the check is then an issue between them and the bank that issued the card. Period. SSA ain't getting involved there.
However, the debit card craze has created a new type of fraud which is currently growing out of control. The new fraud is mainly related to debit card enrollments which can be processed via the automated enrollment system used by the banks through Treasury which provides fraudsters with an end-around the system without having to prove identity. They hijack the claimant's direct deposit right before the Treasury's cutoff dates to redirect the funds to a debit card. Their intent is to do it early enough so it can't be stopped, but late enough so that by the time the claimant gets the letter from SSA notifying them a change in direct deposit has occurred that the funds have already hit the debit card and been spent.
Adding a 30 day delay to automated enrollments (so the claimants have time to get the notification letters before the direct deposit change takes effect) would solve the problem. However, SSA management will just stick their heads in the sand and continue to issue emergency replacement checks to victims. Easy money to the fraudsters in return for good publicity.
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