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A year after the U.S. Department of the Treasury launched a prepaid debit card option for Social Security and Supplemental Security Income benefits, the Financial Management Service announced Tuesday more than 500,000 recipients have signed up for the Direct Express MasterCard. Dallas-based Comerica Bank issues the cards. The card–designed for the approximately 4 million unbanked federal-benefit recipients who receive paper checks–has helped the department meet its objectives to serve unbanked citizens and to reduce mailing costs, according to David Lebryk, Financial Management commissioner. "Those are two things we feel very strongly about and think are important," he says. Sending a check costs the government between 98 cents and $1, while a direct deposit into a card account costs about 12 cents, Lebryk says. When the card first launched in April 2008, the Treasury Department promoted it on a rolling basis in about eight to 12 states per month. The southern states were a primary focus at the start because of the effect the hurricane season has on states such as Florida, Louisiana and the Carolinas. "The primary purpose for that was we really tried to make sure we had the ability to deliver people's benefits payments in a safe, secure way," Lebryk says. The focus shifted last year to the western states, an area prone to wildfires. Recipient satisfaction is very high, according to a recent survey by the department. Of the 614 recipients surveyed, 95% said they are satisfied with the card, and 86% said they would recommend it to family members and friends who receive a federal benefit payment. Lebryk believes a large marketing campaign involving senior-citizen groups, law-enforcement agencies and some financial institutions helped recipients understand how the card works. "We're quite pleased with the initial response, and we believe the level of satisfaction with the card will speak loudly and encourage others to sign up with the card," he says.
