Rant on SS debit cards for seniors!

[ananda]

I was reading the AARP magazine today, and
there was a section on the new Social Security
debit card for seniors now being introduced
in four states.

So instead of receiving a check each month,
seniors can opt for the debit card so that
each month their payment is loaded on the card.

They can use it to buy stuff at stores, transfer
money, and get cash at ATM's.

The only problem is that there are fees attached
to each transaction.. and to me that sucks.

To my knowledge, many seniors don't get that much
from SS, and it looks to me as though the cards are
some kind of scam to pocket fees from the poor users.

I hate that kind of thing! It's wrong and just another
symptom of the deep ugly insensitive corruption that is
now America!

Sue

[enlightenment]

1. Not good.

Is this an opt-in or an opt-out plan?
If opt-in, I hope AARP helps make it clear the downsides - if it's opt-out, they should be pushing to at least make it opt-in.

Is there an online version of the article?

[dixiegrrrrl]

12. It is a plan suggested for people who do not bank accounts

I get AARP, read the article. I get Soc. Sec. too....
the plan is targeted to people who do not have bank accounts.
Altho I suspect it will be enlarged to sweep as many people as possible into "fees"....
Translated: prey on the poor folks again.

[Obamanaut]

13. I just read this on the ss web site

www.ssa.gov

Beneficiaries without bank accounts living in some states have additional choices.
If an individual prefers the convenience of a debit card, they can obtain a Benefit Security Card. The Benefit Security Card is available in Alabama, Arkansas, Florida, Georgia, Kentucky, Missouri, North Carolina, and Tennessee.
Anyone who does not have a bank account and receives a Social Security and/or Supplemental Security Income check (as well as various other types of Federal benefit payments) can get a Benefit Security Card. The debit card is available through the Department of Treasury’s electronic benefits transfer (EBT) program.
When a person signs up for the Benefit Security Card, their Federal payment is deposited in an account set up just for them.
A Benefit Security Card can be used at automated teller machines (ATMs) and Point-of-Sale devices.
There are fees associated with the service.

[Viva_La_Revolution]

17. I get my unemployment on a debit card now...

They sent me the card automatically, the only other option was to have it direct deposited in my bank account.

So far, no fees have come out of my pocket, but I'm sure Visa is making a killing on them from the government.

I don't like the fact that they could trace exactly what I spend my money on, so I usually pull cash from the ATM, then spend it.

[anitar1]

22. There are banks who do not charge seniors for accounts.

I happen to have one of those accounts. All one has to do is inquire.

[peacetalksforall]

2. Many / most? banks offer free checking accounts for seniors. How many

atm fees will pile up when these people go out once a day for the walk or the ride and some just to get out and see people - and spend $10 - 25.00? Are the atms going to give them all fee-free transactions because the banks will make money from the merchant fees?

[OmmmSweetOmmm]

3. This is just plain wrong in every sense. More of a move to a cashless society. nt

[PA Democrat]

4. Sounds like the Bush administration is taking care of their buddies in the banking industry....

again. Banks make big bucks on exorbitant fees. How sad to try to gouge senior citizens. Sometimes you have no choice but use an ATM that is not part of your bank's network.

[katty]

5. not a good sign, fees on card--left with maybe? $1.00 to spend

[mac2]

6. Banks rule under Bush, Inc.

[Angela Shelley]

7. When the recipient dies, there´s no paperwork necessary

to clean out the account.

[fed-up]

8. so now they want a RECORD of what seniors are spending their SS checks on??? WTF? nt

[Poll_Blind]

9. Those fees are going to hit seniors who opt for the card very hard. n/t

PB

[hootinholler]

10. Indeed it does look like a fee capturing ploy. n/t

[GreenPartyVoter]

28. It sure does!

[sarcasmo]

11. Hackers must be salivating over this story.

[wildflowergardener]

14. automatically deposit social security

Does anyone know if you can have a social security check automatically deposited in your bank account? It seems like doing this and then getting an atm with that bank would be a much better thing to do - considering as people say, many free checking accounts are available.

Meg

[alfredo]

16. Yeah, mine is auto deposit. They started that a long time ago. I was

glad too. I was a mail man and I had to deliver those checks. I had to alert the person inside so they come and get it before the crack addicts did.

[Warren Stupidity]

18. Lots of poor people don't have a bank account.

So that isn't an option. Frequently they use check cashing services that rape them once a month for cashing their check, and if they live in a high crime area, leaves them vulnerable to mugging when they walk out the door of the check cashing service. In this respect debit cards are a good idea, but the government should not be charging the card holder a fee for the service.

[dysfunctional press]

35. there are plenty of free checking accounts available- so it IS an option.

there's no reason for them not to get a checking account- it would save them over the fees at the currency exchange.

[CRF450]

20. My dad at 71 is doing just that.

Even my weekly income goes into my bank account automatically. Out of convenience really, I dont want to rush to the bank every friday and wait in long lines.

[defendandprotect]

24. Yes . .. and that's the most common way to do it ----

[trof]

25. I do too. Don't want debit card.

[pitohui]

31. yes direct deposit is the preferred method

almost any bank in my area (maybe every bank in my area) will give you a FREE checking account with a FREE ATM card if you have direct deposit of a pay check or a social security check or another monthly check -- some will even give you cash bonuses for opening the account (i used to open accounts as a hobby, to raise a little extra money, naughty me, and received bonuses as high as $75 but right now the banks are struggling a little too much to offer these deals)

[Hekate]

15. If your debit card is lost or stolen, that's it for your money for the month. Bad idea. nt

[Warren Stupidity]

19. I've heard a rumor that cash has the same problem.

Actually with a debit card the amount on the card is secure unless the pin went with it.

[Hekate]

30. "Cash has the same problem" but they don't mail you an envelope full of cash do they?

And most people don't cash their check and then carry the full amount around with them.

Hekate

[Warren Stupidity]

33. most people don't cash their check and then carry the full amount around with them

As I noted elsewhere in this thread, there are lots of people on ss and ssi who have to do just that as they do not have a bank account. Debit cards are a real good alternative for them. I have no idea about 'most'. My guess is certainly less than 50% of recipients are poor urban folk with no bank accounts.

[pitohui]

32. not necessarily true concerning the pin

i've used my debit card many times without putting in a pin, and i've heard reports of folks with stolen cards who had their accounts emptied even tho they didn't have a pin written down with the card

it's easy to get around putting in a pin these days

they are not secure, too many vendors are happy to put them through without a pin, apparently they get charged a different fee depending on whether or not the pin is typed in

and i'm talking big ticket items, such as i have paid for my auto and homeowner's insurance with my debit card without using a pin (my insurance co. is not set up to take cash payments)

[dysfunctional press]

36. that's only if it's a debit card with a visa logo- then it can be used like a credit card...

but- just like a credit card, you are only liable for the first $50 if the card is lost/stolen.

[anitar1]

21. AARP is another scam IMO. n/t

[defendandprotect]

23. AARP is an INSURANCE company which many seem to forget ---

not really a reliable advocate group for seniors ---

[Cleita]

26. This could be useful for seniors who can't get free

checking accounts, but I agree that there shouldn't be fees attached for each transaction. This is penalizing the poorest of seniors again.

[Peace Teacher]

27. Another reason to shake our heads.

[AnnInLa]

29. I had the same reaction that you did, altho

the article said that participation is strictly voluntary.

Pretty soon every single amount of money will be on some type of card, making even more and more money for the credit card industry.

It is so much more tempting to use a card rather than take the time to use a check. I don't have a good feeling about this.

[dysfunctional press]

34. direct-deposit is the way it's done now- i don't know anyone who still gets a monthly check.

i'm not saying that nobody does, just that i don't know anyone who does. all the people i know who are on SS get the money direct-deposited to their bank account.