The U.S. Department of the Treasury has issued a final rule to "extend the safety and convenience of electronic payments to all Americans receiving federal benefit and non-tax payments. Anyone applying for benefits on or after May 1, 2011, will receive their payments electronically, while those already receiving paper checks will need to switch to direct deposit by March 1, 2013."

Eight in ten federal benefit recipients already use direct deposit; the new rule is designed to push the other 20% over the line to electronic payments. The move is expected to save Social Security $1 Billion.

Following some recent press coverage of fees associated with the use of unemployment benefits cards in some states, the Network Branded Prepaid Card Association (NBPCA), a non-profit, inter-industry trade association created to advance the success of branded prepaid cards, (cards usable wherever American Express, Discover, MasterCard or Visa cards are accepted), has issued consumer tips for having a positive experience with unemployment benefits cards. READ MORE »

In a press release this morning, the U.S. Department of the Treasury's Financial Management Service (FMS) announced it has "designated Comerica Bank as its financial agent in a new initiative to give millions of unbanked Americans the option of using a prepaid debit card for receiving Social Security and other federal benefit payments. The "Direct Express®" card provides a safer and more convenient alternative to paper checks. Comerica Bank was selected, in part, because of its experience as a prepaid card issuer for millions of benefit recipients, particularly for state government programs." The press release does not provide any information about which card network brand will be on the new cards.

Eleanor Laise reports for the Wall St. Journal on plans by the US Treasury Department to "introduce a prepaid debit card for Social Security recipients in an effort to provide safer and cheaper benefits payments." The card will be issued by Comerica Bank.

James Daw reports for the Toronto Star about the pre-paid benefits cards that Mint Technology Corp. has introduced. "There is an underserved market that needs a sort of virtual bank account," says Mint president Frank Maduri.

Evolution Benefits has announced a pilot test with the Hartford Public Schools of TeacherDollars, a new debit card program developed with funding from The Robert & Margaret Patricelli Family Foundation, card technology from Evolution Benefits, and program leadership from the Hartford Public Schools.

Jerry Gleeson reports for the Journal News (NY) about New York State's plans to begin paying unemployment benefits into accounts that will be accessed via debit cards.

SHPS, a provider of healthcare spending accounts, has announced an agreement with First Data Healthcare Services and UMB Bank Healthcare Services to offer a multi-purse debit card and related transaction processing services for SHPS' client's spending account programs.

Exante Financial Services has announced a new Health Savings Account MasterCard debit card.