Social Security at the ATM

If the government gets its way, the Social Security check won't be in the mail anymore.

Rather, it will be coming to retirees, disabled individuals and low-income people electronically -- even if the recipient doesn't have a bank account.

The Treasury Department is announcing today that it is offering debit cards, sometimes called automated teller machine cards, to Social Security recipients without bank accounts in Nevada and 11 other Western states. Social Security recipients in other states already have the opportunity to get the ATM cards.

The government counts 56,000 Social Security recipients in Nevada, including 52,000 in Las Vegas, who receive paper checks in the mail. Some of these individuals have bank accounts where they could have the check deposited electronically, which the government recommends.

"We would like everyone to go electronic," said Abbie Loftus, director of the Treasury's Financial Management Service in San Francisco.

The Direct Express MasterCard will enable "unbanked" recipients of Social Security to avoid the risk of having their monthly payments stolen or lost in the mail, Loftus said.

While recipients can recover the money if they never receive a check, the process takes about two weeks, government officials said.

The Direct Express card also offers conveniences not previously available to Social Security recipients without bank accounts. The recipients avoid check cashing fees typically ranging from $6 to $20.

In addition, "there is no reason for a lot of these (Social Security) recipients to carry around a lot of cash," Loftus said. Social Security recipients can leave the unused balance of their monthly payment in their account.

Each participant gets to make one free withdrawal of cash from participating networks of ATM machines. Each additional withdrawal costs the recipient 90 cents if he withdraws from one of the participating ATM networks, rather than $2 or $3 typically charged to noncustomers at bank-owned ATMs.

The Social Security recipient can use the card to directly pay for groceries, drugs and other goods, often with the option of drawing an additional amount in cash at the point of sale. Direct Express cardholders may obtain statements in the mail for 75 cents monthly or opt to get the information through the Internet without charge.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.