The millions of Social Security beneficiaries who receive their monthly payments through Direct Express prepaid debit cards are about to experience a significant administrative change. The US Treasury Department has begun transferring the Direct Express program from Comerica Bank to Fifth Third Bank, which will become the new financial agent for the program. Although the change will affect an estimated 3.6 million cardholders, beneficiaries should not expect any disruption to their payments or changes in the amount they receive. Instead, the change will primarily involve the replacement of existing Direct Express debit cards with new cards issued primarily by Fifth Third Bank.
What’s changing for the 3.6 million Social Security beneficiaries?
Direct Express is a prepaid debit card program that allows Social Security and other federal benefits recipients to receive their payments electronically without the need for a traditional bank account.As part of the Treasury-led transition, Fifth Third Bank has taken over responsibility for the administration of the program. New beneficiaries enrolling in Direct Express are already receiving Fifth Third-issued cards, while existing cardholders with Comerica-issued cards will be moved to the new system in phases.This change affects how benefits are distributed through the Direct Express program, but it does not change the Social Security benefit amount, eligibility requirements, or payment schedule.
What should existing cardholders expect
Beneficiaries who currently use the Direct Express Card issued by Comerica may continue to use their existing card until they receive further instructions from Fifth Third Bank and a replacement card.Treasury and program administrators have indicated that cardholders will receive advance notice before their new cards are mailed. Once the new card arrives, users will be able to activate it and continue receiving benefits through the updated system.Officials have advised beneficiaries to ensure that their postal address is updated so that the replacement cards reach the right place.
Who is affected by the change?
This change only affects people who receive Social Security or other federal benefits through the Direct Express Prepaid Debit Card.Beneficiaries who have already received their payments via direct deposit into an individual bank or credit union account will not be affected by the change and do not need to take any action.
Will payments be disrupted?
Benefit payments are expected to continue as normal during the transition, according to information released by program administrators.The switch from Comerica Bank to Fifth Third Bank is an administrative change behind the scenes, and officials said recipients should continue to receive payments on their normal schedule.
How to protect yourself from scams
Large-scale benefit program changes can sometimes attract scammers looking to take advantage of beneficiaries.Direct Express officials have warned cardholders to never share their card number, PIN, password or security information through unsolicited phone calls, emails or text messages. Beneficiaries should rely only on official communications from the Social Security Administration, the Treasury Department or Direct Express.