It is called the Direct Express Debit Mastercard and you can use it to get your monthly benefits for programs such as Social Security.
Our partners at TheStreet.com explain the following about the Mastercard:
“The new payment card will be far safer and easier — especially for those who do not have bank accounts. It will be “re-loaded” monthly with the benefit amount. Then, the card can be used with a secure PIN to get cash at any ATM where debit MasterCard is accepted.”
As you can see right off, the Mastercard is really beneficial for those who use it. Some people choose not to have a bank account and instead cash all of the checks they receive from their Social Security. Often times when you cash a check and do not go to your own financial institution, you end up paying huge fees; this card is a way to avoid these extra expenses. Social Security recipients also no longer need to carry around large sums of cash. Not only is it not safe to carry a lot of cash around, it is also extremely risky. If it gets stolen, there is no way to replace the cash that is gone, this is not the case with the debit card which can be replaced.
Another benefit?…Checks no longer need to be sent through the mail! According to Judith Tillman, Commissioner of the Treasury Department’s Financial Management Service, they received 700,000 reports of stolen or lost checks just last year. That is an incredible amount of money that disappeared and recipients never got to benefit from it.
With the Debit MasterCard, there are some fees that you will need to pay. After your first withdrawal from an ATM each month, you are charged $.90 per ATM transaction. However, we all know that even with a bank account we can receive fees from our banks PLUS fees from the bank who owns the ATM. So to me, $.90 seems like a fair withdrawal fee to pay since often times I can pay up to $5.00 or more for using an ATM not owned by my bank. Plus, you will have already been saving on the cost that you would pay to have your check cashed. However, you can avoid the fees by asking for cash back at stores such as CVS or Walgreens when you are making a purchase from these stores (believe me, I’ve done this a time or two just to avoid paying fees)!
The Debit MasterCard works a little bit like direct deposit into your bank account. But instead of the cash going into a savings or checking account, it automatically gets put onto your MasterCard.
So, you must decide if the card is for you! The benefits definitely outweigh the cost and the card is both safe and convenient to use. If you feel as though you are ready for something that can make your life easier, check out the website for more details on your next steps to take!
Photo: Kevin Rosseel
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