Who are the eligible recipients?
Anyone receiving Social Security benefits or Supplemental Security Income is eligible to use this card.
How does the system work?
Federal benefits are directly deposited into your card on the monthly payment date. You won’t have to wait for a check to arrive in the mail. If you have another bank account, you can transfer the funds to that account, but a fee of $1.50 will be charged for each transfer to a bank account in the United States. If you already have a bank account with a debit card, signing up for direct deposit might be a better option.
Using the card
You can use the prepaid Social Security card to withdraw cash from ATMs or get cash at a Walmart Money Center or customer service desk. You get one free cash withdrawal for each deposit; thereafter, a fee of 85 cents will apply for each additional cash withdrawal from ATMs, and the ATM operator may charge additional fees if you use an ATM outside the Direct Express network. If you choose to get cash through a Walmart Money Center, the fee is 85 cents. There are no additional fees from Walmart.
Card restrictions
Although you can use the prepaid Social Security card for most of your purchases, there are some restrictions. You can use your card for online purchases as long as the merchant accepts Mastercard debit cards as a payment method. You cannot pay at gas stations using the pay-at-the-pump method; you must pay the cashier inside the gas station. If you use the Direct Express card to rent a car, the rental agency will place a temporary hold on up to $500 of your funds. The rental hold will be released when you return the rental car, but the funds may not return to your account for up to two weeks. Additionally, the rental agency may require additional documentation because you are not using a credit card.
Impact of the card on credit history
Although the prepaid Social Security card looks and works like a credit card, it is not a credit card. No credit check is required to obtain the card or to deposit your benefits onto the card each month.
Loss and fraud prevention
It is important to protect your prepaid Social Security card just as you would protect any credit or debit card or even your cash. Keep your PIN safe and do not share it with others. If you lose your Direct Express card or it gets stolen, you should report the lost card immediately by calling the customer service number on the back of the card, so it is wise to copy this number down and keep it stored separately. Direct Express will issue a replacement card so you can continue to access your account. The first replacement card each calendar year is free; afterwards, a fee of $4 will be charged for replacing a lost card. Your replacement card should arrive in the mail within seven to ten days.
Liability protection
When it comes to a lost or stolen card, your Direct Express card is protected just like a traditional bank debit card. Since the card is a prepaid debit card from MasterCard, you receive MasterCard’s zero liability protection, meaning you will not be held responsible for unauthorized transactions (although exceptions may apply).
How to register for a prepaid Social Security card
You can register for the card at your local Social Security office or by calling the Direct Express Card registration center at (800) 333-1795. Beneficiary representatives can register in the same way.
Questions
The Rumor
Does Social Security regulate how the money is spent on the preloaded Social Security card?
No, the Social Security Administration does not regulate your spending using the Direct Express card. As long as the card has sufficient funds, you can use it anywhere that accepts MasterCard debit cards.
How can I transfer money from the Direct Express card to another debit card?
You cannot transfer money from the Direct Express card to another card, but you can transfer funds to a personal bank account in the United States. To transfer money, you will need to call the customer service number on the back of your card. There will be a fee of $1.50, which will be automatically deducted from your debit card.
How long does it take to receive the preloaded Direct Express card?
According to Direct Express, a new card will take seven to ten business days to arrive.
Source: https://www.thebalancemoney.com/what-you-must-know-about-the-social-security-debit-card-4171601
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