Social Security ‘Debit Card’ Enjoys Some Success

July 31, 2009

A year ago, the Social Security Administration teamed up with the Dallas-based Comerica Bank to create a debit card, which could be used by individuals collecting social security benefits from the government. The card is intended to be used by individuals who do not have bank accounts in which they can deposit their checks.

Many check cashing services exist, but they often charge exorbitant rates to elderly or disabled individuals who can barely afford to pay the hefty percentages. The cards can be used just like any other debit card attached to a bank account. The card, which is endorsed by MasterCard, is connected to an account, where the U.S. government automatically deposits an individual’s social security checks.

Since it was created last year, the cards have picked up in popularity. Over half a million Americans have signed up for the program and have, therefore, avoided the  fees charged by check cashing services.