Skip to comments.Direct deposit to replace U.S. checks
Posted on 01/17/2013 7:22:00 PM PST by MeneMeneTekelUpharsin
Paper checks will be abolished for all federal benefits, including Social Security, eventually, but people who currently receive checks will have some extra time to adjust to the new rules. Individuals who apply for Social Security, Veterans Affairs or other federal benefits on or after May 1, 2011, will have to select an electronic payment method -- either a debit card that will be reloaded each month or direct deposit to a bank account. The direct deposit option, which is safer than a check and involves no fees, is the best option for most people. But current beneficiaries who receive monthly checks will continue to receive their benefits in that form until March 1, 2013. After that, they must select an electronic payment method.
Although here are no set-up or maintenance fees with the Direct Express debit card, you will pay 90 cents for ATM withdrawals beyond one free withdrawal per month (in addition to any fees for out-of-network ATMs). Youll also be charged $1.50 for each transfer made from the debit card to a checking or savings account. See the Direct Express Web site for more information about the card fees.
(Excerpt) Read more at kiplinger.com ...
Those individuals not having a checking account are going to be in for a big surprise (obviously planned by the government). They will not be able to get a debit card from their bank and will have to accept the government-issued Direct Express Debit MasterCard. These government cards will only work in an ATM machine if the holder does not have a bank account. The ATM machine will only allow withdrawals in multiples of $20. So, if the amount does not come out on an even $20 break, the card holder will see funds trapped in the debit card account which the holder can NOT withdraw (since the holder does not have a bank account to which those funds are deposited or can be deposited).
Furthermore, each time a withdrawal is made, the ATM will charge a fee anywhere from .90 to $3.00 per transaction (depending upon the bank) after the first free one on that withdrawal or transfer. Also, at then end of the month, it is rumored that the money on the card will be cleared in order to deposit the new incoming benefit check. So, if there is a small amount left that is not a multiple of $20, the benefit check recipient loses those funds in addition to being charged a fee each time (s)he withdraws money.
People voted for the government that is doing this to them. People get the kind of government they deserve.
It’s also a case of, if the government claims you got your cheque, then you got your cheque, regardless of if you did or not.
If the gov’t can monitor all transactions (no cash - make everything electronic), more (all?) Liberty is lost.
I'm less than concerned about folks drawing a check from the government.
BTW, there are some folks that don't have checking accounts because they don't want them.
What I don’t understand is the lack of outrage over paying fees to get the money and funds being trapped in the account. I guess when it starts happening some will begin to complain. It looks like a large portion of the sheeple only pay attention to immediate gratification and entertainment.
There will be a new set of techniques, and things will move on as before.
Have faith in humanity not just 'taking it'.
I get my SS payments by direct deposit to my bank account now. I chose to do so because I save postage and it arrives into my account about a week earlier.
But I can see that this could be a real problem for those without the option of doing it that way.
When I was in the service in 1985 they were pushing everyone hard to get direct deposit. There were a few hold outs but most of us did. The reason they were pushing so hard was to prevent people from losing their whole pay checks do to theft or accidental loss. People actually did lose their wallets with their entire pay check in them. I found a wallet once when I was on guard duty. $480.00 in it. The O.D. and I counted it together and logged it in our separate duty logs so their would be no question. The guy who lost the wallet gave $15 .
I dunno. I haven’t seen a check in over 25 years. It’s been DD for at least that long. I work over in the shoddy private sector, so what do I know.
Anyone can get a prepaid debit card. It's basically the same as a checking account, but without the paper checks. I have one from Perkstreet.com. No fees and I get 1% cashback plus monthly specials called 'Powerperks'. I got $10 back on a $40 purchase at Pet Supplies Plus last month.
They forced me to take my Social security check by direct deposit almost 2 years ago.
They forced my wife about a year ago.
The company my wife works for eliminated pay checks 2 years ago and she has to have them direct deposited.
I hate it but there isn’t an option.
This could be a problem for the illegal aliens, who generally don’t trust banks. I wonder how many accounts will be directed to mexican banks.
“What I dont understand is the lack of outrage over paying fees to get the money and funds being trapped in the account”
What the hell are you talking about?
in the 65 years i’ve had bank accounts i’ve never paid a fee of any kind except to print checks.
I've not had a checking account for years. I get by just fine.
Of course, I don't rely on the Federal Government for my income, either.
The government-issued debit card is going to cause the recipients of such card some financial losses. Wonder why they're not upset about it? I don't have one, don't care if they take a loss, but just wondering why they're not getting upset about impending losses from using the card if they do NOT have a bank account.
In what way is this bad?
I have no burning desire to participate in the black market or smuggling. It’s inefficient to have to have a back channel.
The government is cheating people. Even if the people are ignorant and stupid, it is an outrage that the government is cheating them.