The U.S. Department of the Treasury and the Federal Reserve Banks are sponsoring a program called Go Direct. The goal of this program is to create awareness of the ease of use and safety of direct deposit as advantages over paper checks. This program is primarily targeted towards the 17 percent of individuals who are still receiving paper checks for their Social Security, SSI and VA compensation and pension payments.
Some of the touted advantages of direct deposit include preventing identity theft, having immediate access to the money, and eliminating the need to go to the bank to deposit paper checks. The Go Direct website also states that if the more than 140 million checks currently issued each year by the Treasury were converted to direct deposit, the taxpayers would save $130 million annually.
While the advantages of the program are being used as an incentive to convert to direct deposit, the voluntary aspect of it becomes a mandate on March 1, 2013. That’s the date when anyone still receiving federal benefits by paper check will be forced to make the switch to electronic means. Payments will be issued via the Direct Express debit card for those who have not selected an electronic option by the deadline.
For more information on the Go Direct program, go to http://www.godirect.org/.
With the huge push by government entities and private corporations to go digital, what do you think the Postal Service can do to take advantage of the electronic trend? Comment here.