If individuals did not ask that their payments be sent electronically when they made the application for benefits, they are strongly advised to immediately make that request. As of March 1, 2013, there will be no more paper Social
Security checks issued and to prevent any interruption in regular payments, the beneficiary’s funds may be sent by the Treasury Department to the Direct Express Card system.
In addition to being simple, this direct deposit program is known to be an effectively secure and safe method of receiving benefits. Beneficiaries can request that their funds be directed into a personal credit union or bank account. The requirement for this process is that information regarding the account number, the type of account (savings or checking) and the routing transit number of the financial institution is provided to complete the transaction.
Another reason for the switch from paper Social Security checks involve the fact that it decreases the possibility of checks being misplaced or stolen. With the Direct Express Card, if it is stolen or lost, the money will be safe, especially if the matter is reported immediately. The money on the card account is insured by the FDIC and cards are replaced without any trouble if they are stolen or lost.
Other beneficial features of the electronic system for Social Security benefits when compared to paper Social Security checks include ease and convenience. That is, there is no more need to wait for long periods for the arrival of the mail as the money is posted automatically to the account of the individual each month on the pre-arranged payment day. In addition, there is no requirement to make the journey to cash the check or make a deposit. The card can be used at all the ATM machines, banks and retail locations in the country when the individual requires cash.