Millions of Social Security recipients who receive monthly payments through Direct Express prepaid debit cards will undergo important administrative changes. The U.S. Treasury Department has begun the transition of the Direct Express program from AlliedSignal Bank to Fifth Third Bank, which will become the program’s new fiscal agent. While this change will affect an estimated 3.6 million cardholders, beneficiaries should not expect any disruption to their payments or changes in the amounts received. Instead, the transition will primarily involve replacing existing Direct Express debit cards with new cards issued by Fifth Third Bank.
What’s happening to the 3.6 million Social Security recipients?
Direct Express is a prepaid debit card program that allows Social Security and other federal benefit recipients to receive payments electronically without the need for a traditional bank account.Fifth Third Bank has taken over responsibility for administering the program as part of a Treasury-led transition. New beneficiaries who sign up for Direct Express have already received cards issued by Fifth Third, while existing cardholders with cards issued by Comerica will be moved to the new system in phases.This change affects how benefits are provided through the Direct Express program, but does not change Social Security benefit amounts, eligibility requirements or payment schedules.
What current cardholders should expect
Beneficiaries currently using Direct Express cards issued by Comerica can continue to use their existing cards until further instructions and replacement cards are received from Fifth Third Bank.Treasury and program managers said cardholders will receive advance notice before the 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 advise beneficiaries to make sure their mailing addresses are up to date so replacement cards get to the correct location.
Who will be affected by this change?
The transition only affects people who receive Social Security or other federal benefits through Direct Express prepaid debit cards.Beneficiaries who already receive payments via direct deposit into their personal bank or credit union accounts will not be affected by this change and do not need to take any action.
Will payments be interrupted?
Benefit payments are expected to continue normally throughout the transition period, according to information released by plan administrators.The switch from AlliedSign to Fifth Third was 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 welfare program shifts sometimes attract scammers seeking to take advantage of beneficiaries.Direct Express officials are warning cardholders never to 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, Treasury Department, or Direct Express.
