Earlier this year, the U.S. Department of the Treasury announced that it would be retiring the paper Social Security check for millions of baby boomers and others applying for federal benefits, a move that will save taxpayers $1 billion over the next 10 years. As of May 1st, anyone newly applying for Social Security, Veterans Affairs or other federal benefits is required to choose an electronic payment method – paper checks will no longer be an option. But those currently receiving their benefits via paper check have been given until March of 2013 to make the switch.

The way I see it, backing the move to paperless Federal benefit payments is my patriotic duty. And putting some urgency to the switch from checks to electronic benefit payments is a moral imperative. Forget the fact that those currently receiving federal benefits checks have until 2013 to make a change - we need to speed things up! 

Delaying the move for almost two years isn't helping to reduce the budget deficit.  In fact, it's costing us big time. Do the math - .92 cents (cost to create and mail a check) times 9 million existing US Treasury payment recipients equals $8.28 million dollars per month. Now multiply that by 12 months. That's a whopping $99 million dollars (plus) per year!

So why is Direct Deposit such a hard sell when there are so many logical reasons for choosing it?

• A paper check is no match for Mother Nature. When severe weather strikes, evacuations and mail disruptions can prevent people from getting their Federal benefit checks on time. By signing up for Direct Deposit, they can still get to their money. Check out Protect Your Payments from Natural Disasters.
• Electronic payments eliminate the risk of stolen checks and help protect benefit recipients from financial crimes. Last year alone, more than 540,000 Social Security and Supplemental Security Income checks were reported lost or stolen.
• Direct Deposit recipients get immediate access to their funds from virtually anywhere. I wonder how many people turn down offers to travel (or leave their house) around payment date because they have to wait for their check to hit their mailbox...

Can we really afford to wait until 2013 to become all-electronic?  I don't think so, and I don't want to. But I don't have to look far to find resources that will help me reach out to those who may be dragging their feet and avoiding the change. Go Direct®, sponsored by the U.S. Department of the Treasury and the Federal Reserve Banks, is on a mission to increase electronic payments and reduce the use of paper checks for federal benefit payments. The GoDirect website is loaded with information and tools that make it easier for all of us to help:

    Research and Statistics
    How Many Federal Benefit Checks Are Being Mailed to Your State?
    The 10 Billion Dollar Impact of Retiring the Check

Join the crusade:

• Take advantage of grab-and-go articles and copy that can easily be added to newsletters, websites and other communication vehicles
• Post statistics on Twitter, Facebook, and in email signature messages
• Display campaign materials in your facilities
• Link to GoDirect from your website
• Order free promotional tools, including:
  • Materials for financial institutions
  • Materials for community-based organizations

And last, but not least, keep spreading the word. Let's not wait until February of 2013 to go looking for ways to spread the news about the March 2013 deadline for all-electronic federal benefit payments. We need to get busy now!

Written by Anne LaPine, AAP, Director of Marketing and Membership, The Payments Authority