Wednesday, May 16, 2012

The Check is Not in the Mail

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.

12 comments:

Anonymous said...

My elderly customers keep asking me about this and they are not happy. They prefer to cash their checks and buy postal money orders. This is going to hurt our business in the long run in more ways than one.

Anonymous said...

What a great idea...after all the elderly are awesome with electronics. Hooking up DVD players-computers you name it and they take to it like a fish to a frying pan.
Seriously though, my Father is 82 and I have had to tell him many times not to trust anyone with your personal information. Our elderly come from a different time when you could actually trust most people.
So I am sure you will hear more about the scammers that contact someone...Hello, Mr./Mrs. Elderly - our system crashed and we need to update your information in order for you to keep using your card. Please read to me the account numbers on the front of the card and on the back in order for me to verify that you are physically in possession of the card and tell me your P.I.N....Thank you Mr./Mrs Elderly (for your life savings). Sincerely Mr. Swindler with Trust Me Banking.
As for myself I quit buying bonds when they went to the Debit Card system.

Anonymous said...

one advantage for the USPS will be to
reduce the overworked upper level management since they will not be fielding phone calls from someone looking for a missing check...

Anonymous said...

The elderly are certainly not happy. I have many friends that like to cash their checks and buy money orders. Additionally, they do not have bank accounts and the debit card is not accepted at many places, including paying their rent.

Also, although savey and smart, many elders do not want or do not have access to computers. They trust the mail but they do not trust letting any personal information go viral over the internet.

I think the government is pushing too hard and the American people should have a choice. It's their money, they have worked hard to work for it and it should be them to decide how to receive it.

Anonymous said...

Don't worry if it doesn't make sense the govt will do it.

Anonymous said...

I do not like being mandated to get my money or receipt or whatever by the method states--it should always be my option. I have cancelled business with various companies who state they only take payment online. It is also a scam for them because they have you accept a statement that they will continue your subscription until you take some action. So, they have your visa or bank info and keep taking the money out automatically as your subscription runs out. So, they either take my check via mail or I do not buy from them.
But I guess the postal service can have a service where the debit card can go somehow to the station which a customer can pick up with th proper ID.

Anonymous said...

Just another example of the US Government NOT supporting its own. Won't be long before the IRS mandates e-filing of tax returns...

Betty R. said...

I believe in choices. Some people do not adapt to change very well. They like having the paper checks. They should have that option.

Anonymous said...

Well there is an upside. At least they are issuing it in the form of a Debit card - which can be used to buy Money Orders. I also don't like the idea that they are forcing them to do it. My Mother liked the cash in hand. But then the gov. doesn't really GAC about what we think anyways.

Grannybunny said...

My best friend receives Social Security Disability and -- since he does not have a bank account -- agreed to accept his benefits on a debit card. The card carries outrageous transaction fees, such that -- once his monthly benefit has been deposited -- he goes and withdraws most of the money in cash, so that he will have only one large transaction fee per month, instead of many eating up his benefits in bank charges. It is not beneficial for seniors/the disabled to have to carry all their money around in cash. If the Government is going to insist on people receiving benefits on debit cards, it should require the issuing banks to charge little to no fees.

Anonymous said...

Just another way our own government is trying to help us fail. Heck, we are not their carrier of choice for overnight mail....why not? It should be mandatory that ALL government agencies use the United States Postal Service. It's very sad to sit and watch and can't do a thing about it.

Exhume said...

Finally - I was beginning to wonder just what type of Socialist Republic I lived in. It is about time the Government stepped up and said "You are just a drone that lives in my country and you can not possibly choose what is best for you. So I will make your choice for you".
Instead of picking on the elderly could'nt the Government go after all those that make Fraudulent Welfare claims....I'm sure there is a billion or two there instead of the 130 million.