TN 40 (04-11)

GN 02402.090 Cancellation of Direct Deposit

A. Policy for direct deposit cancellation

1. What cancels direct deposit?

The following events cancel direct deposit.

  • The beneficiary or representative payee dies or

  • The beneficiary or representative payee requests direct deposit cancellation.

2. What change does not cancel direct deposit?

A change in the claims symbol or entitlement to a new benefit (e.g., B to D or D after A) does not cancel direct deposit.

B. Actions when the beneficiary or representative payee can request cancellation

1. Cancellations by beneficiary or representative payee

The beneficiary or representative payee can request to cancel a direct deposit authorization at any time in person, by phone or in writing. However, inform the beneficiary or representative payee of Treasury’s requirement that existing entitled beneficiaries and representative payees (prior to May 1, 2011) must receive an electronic payment by March 1, 2013. Follow the Direct Deposit Information for all types of Interviews in GN 02402.005E. and GN 02402.005F.

When the beneficiary or representative payee requests cancellation:

  • obtain an updated payment address,

  • remove the direct deposit information,

  • advise the beneficiary or representative payee to keep the account open until the first check arrives.

2. Cancellations by financial institutions

When an FI accepts the first direct deposit payment, it establishes an agreement to honor the direct deposit request, as well as the responsibility and liability for the payments on a continuous basis. Although it is rare, the FI can cancel this agreement by providing the beneficiary, not SSA, with written notice.

C. References

  • GN 02402.001, Direct Deposit as a Form of Electronic Payment

  • GN 02402.005, Direct Deposit Information for All Types of Interviews


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0202402090
GN 02402.090 - Cancellation of Direct Deposit - 05/25/2011
Batch run: 05/25/2011
Rev:05/25/2011