TN 28 (02-10)

GN 02210.152 Collection of Title II and Title XVI Overpayments by Credit Card

A. Policy

Debtors have the option to pay their title II and title XVI debts by MasterCard, VISA, Discover, American Express or Diners Club credit cards. This option is available to current pay debtors and non-pay debtors in both programs.

SSA does not have the capability to make debit transactions. Debtors should be advised that if they wish to use a MasterCard or Visa debit check card, the transaction can only be processed as a credit card payment.

NOTE: The Diners Club Card will only be accepted when it processes as a MasterCard or Discover transaction. Acceptable Diners Club Cards should have the MasterCard or Discover Card logo present on the card and meet the numerical requirements. (See chart GN 02210.205B.1.)

B. Overview of debtor credit card payment options

1. Initial overpayment notices

Among other things, initial overpayment notices request the debtor or liable person to repay title II and title XVI overpayments. The notices explain the debtor’s options for repaying, including repayment by credit card. Debtors who wish to repay by credit card can do so by completing the payment stub that accompanied the notice with their credit card information. Using the refund envelope that is included with the initial overpayment notice, the debtor should mail the completed payment stub to MATPSC for processing.

Once the initial overpayment notice is sent, the system automates collection activity for most overpayments when the recipient is in current pay status. For most non-pay cases, the system transfers jurisdiction for collection of the overpayment to the Recovery and Collection of Overpayment Process (RECOOP).

2. RECOOP billing notice

When a non-pay debt is not resolved as a result of the initial overpayment notice, the debt is controlled by RECOOP. RECOOP is a billing and follow-up system developed as a part of the modernization of the SSA Debt Management System. Part of the billing notice produced by RECOOP is a payment stub (or coupon) which includes the option to repay by credit card.

3. Other overpayment notices

SSA also sends other overpayment notices that include the option to repay by credit card. For example, Treasury Offset Program (TOP) pre-offset notices offer debtors the option to repay by credit card. For more information about the TOP pre-offset notices, see GN 02201.029C.2.

In addition, the notices sent to individuals subject to mandatory cross program recovery (CPR), the notices for accepting or rejecting a compromise offer, and the scannable payment coupons sent to employers for administrative wage garnishment debts (AWG) offer the option to repay by credit card. For more information about the mandatory CPR notice, see (SI 02220.020B.3.). For more information about the contents of AWG employer package, see GN 02201.040B.

4. Telephone inquiry to PSC

A webpage has been developed for use by the debtor contact representatives in the PSCs and by the remittance clerks in the MATPSC Remittance and Accounting Unit (RAU) when a debtor calls and wants to make a payment by credit card. For more information about handling credit card payments over the telephone and entering the information into the webpage, see GN 02210.205B.

5. Credit card form

There is one form used in the credit card process. There are six versions of the one form that are specific to each PSC.

Form SSA-4588You Can Make Your Payment by Credit Card. The form can be used by debtors for a single (one-time) payment or for recurring monthly credit card payments. A sample version of the form is in GN 02210.154.

NOTE: Detailed field office instructions for handling credit card payments are outlined in GN 02403.006. Specific PSC instructions for handling credit card payments are outlined in GN 02210.205.

C. Procedures for credit card security

Apply the following procedures for credit card security:

  • Do not list the remitter's credit card number anywhere in the remarks area of the DMS screens when preparing the automated receipt.

  • Do not include the remitter’s credit card number in any documents retained in paperless or in the Non-Disability Repository for Evidentiary Documents (NDRED).

  • Do not photocopy the completed SSA-4588-OP for office use or as a receipt. However, the FO may give the SSA-4588-OP to the debtor because the FO will send the DMS-generated payment coupon to the MATPSC.

  • Do not keep a copy of the SSA-4588-OP in the FO or mail it to the MATPSC. If the DCU completed the transaction by telephone, the SSA-4588-OP remains with the remitter.

D. References

  • GN 02210.153 Paying by Credit Card – Teleservice Center (TSC) Procedure

  • GN 02210.154 Sample Form SSA-4588-OP3 – You Can Make Your Payment by Credit Card

  • GN 02210.156 Webpage link for Credit Card Payments Over the Telephone – for DCR use only

  • GN 02210.205 Paying by Credit Card – DCU Procedure

  • GN 02403.006 Processing Remittances Received in the FO

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GN 02210.152 - Collection of Title II and Title XVI Overpayments by Credit Card - 12/02/2013
Batch run: 12/02/2013