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.
Can you quantify that? I believe that in some situations, it can be much more efficient.
Essentially, the Obama voters are the ones who get screwed, which would be okay, because they earned it with their vote. The problem is that they’ll complain and the Senate will pass a bill requiring that the rest of us also get screwed in the name of “social justice”.
If one is an Expat, direct deposit is the way to go.
My SS payments come on the 4th of every month, like clockwork.
I can go to my online banking just after midnight, the 4th, and see that my money is there. There was one exception. I had a 4th of July payment that posted on the 3rd.
I have been on direct deposit for four years. It has been perfect into at first my European bank, and now my Philippine bank. When I moved here, I opened my Philippine bank account. The lady in the bank filled out the SS forum. All I did was sign it.
My very next SS direct deposit was in my new account.
No doubt, they will make arrangements for the mentally and physically impaired.
Since about 1912. Welcome to the party.
It’s not cheating them if it’s a handout
Finally - something this administration is doing that I agree with. this is long overdue. I love direct deposit and autoamtic payment of bills. I have better things to do with my time than deposit government checks.
Well, maybe you have a point. Don't agree with most of the payments anyway unless the recipient is elderly, poor, disabled or mentally-challenged.
Use the frozen and lost money to pay on their Obmamaphone bill.
Small potatoes to be worried about when you should be impeaching DC.
19,000 welfare recipients in MA were receiving checks in the mail that apparently didn’t exist(the people)- $7.6 million every month.
I’m OK with direct deposit to stop even a portion of this crap.
I agree. It’s really been no big deal for me. Haven’t had a check book in almost 7 years. Pay my bills on-line, payments come to me by direct deposit and never paid a fee to the credit union where I bank. I understand some people haven’t been able to get a checking account lately though because they now run a credit report and verify SS#’s and addresses. Of course I’m sure some of these same financial institutions also launder money - but that is another issue entirely.
Most checking accounts are free with direct deposit and they have online bill pay so you can pay your credit card bill with them
Checking debit cards do result in fees so I stick to a CC.
I assume this is to save money which it does.
My pay stub is electronic, and W2.
There is a problem with older disabled who cant use a computer trying to cope with this.
the rest of the world leapfrogged past cheques. They cost banks a lot to process and take ages compared to direct transfers. why africa even has mobile phone banking
I won’t have a stinking smart phone either!!!
I use a dumb phone and we have texting blocked on our phones, the dumbest thing ever thought of!
No god damn way will i use a debit card!
I’ve actually had that debit card for over a year now and the only fees are if you remove cash from the card at your bank. I do only one cash transaction a month at the bank so I do not pay any fees. If you use the card at the grocery store and get cash back there is no fee. Plus, any left over funds at the end of the cycle are not cleared out, the new amount is just added on.
The VA was pushing the Direct Deposit for travel pay benefits. Problem was that we can’t deposit on the Direct Xpress cards. So you either had to have a bank account or get a money card. Some vets have been unable to set up the cards because they can’t get the routing number without having online access. Since about December the VA has decided to continue to send checks.
I’ve had direct deposit since I first put on a uniform in the summer of 1972. It came in real handy in the fall of 1978 when the the government didn’t pay us and my bank made the deposit anyway out of their funds.
I won’t work for a company the doesn’t DD. Why wait in line? Why hassle with signing, waiting in line, and then put in a checking account where it has been (with DD) since midnight?
Good. That answers that question. Was wondering if they could just clear someone's funds out.
- Check now with your own bank now!
Banks are reporting on Tuesday December 3rd, 2013 that Direct Deposits of your Social Security payments for December 2013 are not being received from the US Treasury.
As of 10am EST banks are receiving huge amounts of telephone calls and internet site inquiries because their bank accounts are not receiving their regular Social Security Direct Deposit amount credited to their bank account.
- Caution - Obama has warned that US citizens may not receive their SS payments.
Obama and his incompetent thugs cannot set up and run a website after spending over six hundred million ($600,000,000) dollars to the relatives and friends of Michelle Obama and Valerie Jarrett to set up a website.
NEVER LET A CRISIS GO TO WASTE - Rahm Emanuel - Obama’s former White House Chief of Staff
Where is the money golfer?
- Several states are now reporting that SS Direct Deposits are now being deposited at this time — I have some contacts looking into this now -
The lefties have designs on your 401K and IRA accounts - their master plan is for your retirement funds (and any inheritances) to be “invested” (grabbed/confiscated) by the US Treasury and they will happily dole out an amount they feel is “fair” return as American citizens are simply just too stupid to invest their retirement funds themselves.
Back before I retired from GM, the UAW fought tooth and nail against direct deposit, because they didn’t want their spouses to know how much money was actually coming in. They wanted to cash their check at the bar and bring cash home.