February 15, 2011
Federal benefit payments are going all-electronic
The U.S. Department of the Treasury now requires all federal benefit and nontax payments to be paid electronically. People applying for Social Security, Veterans benefits or other federal benefits on or after May 1, 2011, will receive their payments electronically starting with their first payment. People currently receiving federal benefit checks will need to switch to an electronic payment option by March 1, 2013.
Those who do not choose an electronic payment option at the time they apply for federal benefits or those who do not switch by the deadline will receive their benefit payments via the Direct Express® Debit MasterCard®card, so they will not experience any interruption in payment. People who are already receiving benefit payments electronically do not need to take action. They will continue to receive their payment as usual on the payment day.
For more information, visit www.GoDirect.org.
Source: U.S. Department of the Treasury, Financial Management Service