A major change is coming for millions of Social Security and Supplemental Security Income beneficiaries who receive their monthly payments through the Direct Express prepaid debit card.
The Social Security Administration says the U.S. Treasury Department is changing the financial institution that manages the Direct Express card program. Fifth Third Bank will replace Comerica Bank as the financial agent responsible for the cards.
The change is expected to affect about 3.6 million Direct Express cardholders, according to reports. While the switch may sound significant, beneficiaries should not see a change to their benefit amount because of the bank transition.
What Is The Direct Express Card?
The Direct Express card is a prepaid debit card used by some Social Security and SSI recipients who do not receive payments through a traditional bank account.
Instead of getting a paper check, beneficiaries can have their federal benefit payments deposited directly onto the card. They can then use the card to make purchases, pay bills, withdraw cash and manage their benefit money electronically.
Most Social Security and SSI recipients already receive payments electronically. More than 99% of beneficiaries get their money through direct deposit or Direct Express cards, according to the article.
Fifth Third Bank Replacing Comerica Bank
The key change is that Fifth Third Bank is taking over the Direct Express card program from Comerica Bank.
New people enrolling in the Direct Express program are already receiving cards issued through Fifth Third Bank. Current cardholders, however, will be moved over gradually.
The Social Security Administration said the transition for existing Direct Express users will begin later this year or early next year. That means many beneficiaries may continue using their current Comerica-issued card until they receive a replacement.
When Will New Direct Express Cards Be Sent?
Current Direct Express cardholders will eventually receive a new Fifth Third Bank card to replace their Comerica card.
The Treasury Department is expected to begin sending replacement cards later in the year. In some cases, beneficiaries may receive the new card when their current card expires.
Recipients should watch for official notices and card mailings. It is important to read any instructions carefully and avoid throwing away mail that may contain a replacement card or activation information.
Beneficiaries should also be cautious about scams. The government will not ask people to pay a fee to receive their replacement card or demand personal information through suspicious calls, texts or emails.
Paper Checks Are Also Being Phased Out
The Direct Express change comes as the Social Security Administration continues moving toward electronic payments for all beneficiaries.
The agency plans to fully transition away from paper benefit checks by the end of the year. This means people who still receive paper payments will be expected to move to electronic payment options.
For many recipients, that may mean direct deposit into a bank account. For others, the Direct Express card may remain the main option.
What Beneficiaries Should Do Now
Most Direct Express users do not need to take immediate action unless they receive official instructions. Current cards should continue working until the replacement process reaches them.
Beneficiaries should keep their mailing address updated with Social Security, monitor official notices and check their card expiration date. Anyone unsure about their payment method can contact Social Security or Direct Express through official channels.
The Social Security debit card change will move millions of Direct Express users from Comerica Bank to Fifth Third Bank.
Existing beneficiaries will receive replacement cards during the transition, while new enrollees are already getting Fifth Third-issued cards.
The change affects card management, not the amount of Social Security or SSI benefits people receive.