As Social Security benefits go paperless, beware debit card fees
The paper Social Security check will go the way of the Pink Princess rotary-dial phone, the typewriter and yes, sadly, Elvis in roughly seven months. Nearly 6 million people throughout the country -- including 179,000 in Michigan -- still need to decide how they're going to get their money.
People can sign up for direct deposit to a bank or credit union account; or they could opt to have money deposited electronically via the Direct Express Debit MasterCard.
But if they end up with the government-issued debit card, they must watch where they withdraw that money to avoid getting hit by a string of fees. Hint: It could cost you more than you'd imagine by going to an ATM at some huge national banks.
Not surprisingly, the Treasury is touting the popularity of its Direct Express debit card, launched four years ago. The card is an option for receiving Social Security benefits, especially for those who don't have regular bank accounts for direct deposit.
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.
At Chase, for example, it costs $3 for a non-customer withdrawal from a Chase ATM. The $3 fee is the same at Bank of America for non-customers to use ATMs in its banking centers.
Walt Henderson, director of the electronic funds transfer strategy division for the U.S. Treasury, said Treasury is looking for opportunities to expand the network.
An ATM locator is at the bottom of www.usdirectexpress.com, where cardholders can locate the surcharge-free ATMs by ZIP code.
To read this entire article, please click on this urlink.
