SSA - POMS: GN 02402.005 - Direct Deposit Information for All Types of Interviews

A. Introduction to the Electronic Payment Initiative

The Department of the Treasury (Treasury) All-Electronic Payment Initiative requires that all Title II and Title XVI applicants select a form of electronic payment. Beneficiaries, recipients, and representative payees (rep payees) receiving payments by check were required to switch to a form of electronic payment by March 1, 2013.

This section contains:

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types of payments excluded from the electronic payment requirement;
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instructions for direct deposit when bank data is not already on the record;
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a list of the advantages of direct deposit if the individual asks about being paid by check; and
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a description of the automated enrollment (ENR) process.

NOTE: For more information about the electronic payment requirement, see GN 02402.001.

B. Requirements for direct deposit

1. Automatic exclusions

For administrative expediency, Treasury excludes the following payments from the electronic payment requirement:

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lump-sum only payments or other nonrecurring payments (see SI 02005.006);
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underpayments paid after death of beneficiaries or recipients;
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payments made to beneficiaries outside the U.S.; and
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fees paid to attorneys.

NOTE: Exemptions to the electronic payment requirements are outlined in GN 02402.001B.

2. When to discuss direct deposit

The interviewer must discuss direct deposit and the electronic payment requirement when taking or developing an initial claim and for any post-entitlement action when direct deposit is not on the record.

3. Automated enrollment process

Beneficiaries, recipients, and rep payees can ask their financial institutions (FIs) to send direct deposit information electronically to SSA through the ENR process. This service allows FIs to transmit direct deposit enrollment information to SSA electronically, thereby avoiding the need to contact SSA's field offices (FOs) or the National 800 Number. Participation in the ENR process is voluntary for FIs per GN 02402.106.

NOTE: If a Direct Deposit Fraud Prevention (DDFP) Block is on the record, the beneficiary, recipient or rep payee is required to make direct deposit changes to the record in person. (See GN 02402.023.)

C. Pre-claims and initial claims interviews

The electronic payment requirement states that all Title II and Title XVI applicants must select a form of electronic payment (i.e., direct deposit or a Direct Express debit card) and initial claims interviews (including a telephone contact to schedule an appointment). SSA technicians must ask if the applicant has an account at an FI. If you are scheduling an appointment, ask the applicant to have their routing and account numbers for the interview. If you are interviewing, take the following actions:

1. Applicant has a checking or savings account

Obtain the FI account information needed to pay benefits by direct deposit.

2. Applicant does not have a bank account

Discuss Treasury’s All-Electronic Payment Initiative and their “Go Direct” campaign. Explain that the rules require beneficiaries, recipients, and rep payees to receive their payments electronically, unless they become exempt by Treasury. For an explanation of the “Go Direct” campaign, see GN 02402.004.

Discuss the advantages of direct deposit and the banking services they provide, as outlined in GN 02402.005H.

If the individual does not want a bank account, discuss the advantages of the Direct Express debit card found in GN 02402.007.

D. Handling iClaims when the applicant does not elect direct deposit

Currently iClaim filers are not offered Direct Express. If you are processing an iClaim and the applicant did not select direct deposit as the method of payment, please contact the applicant via phone and follow the instructions outlined in subsection GN 02402.005E.

E. Handling issues regarding the electronic payment requirement

Follow the instructions outlined below if you are conducting an initial claims interview for a Title II or Title XVI applicant.

If the applicant	Then
• does not have an account, or • refuses a form of electronic payment, and • does not allege one of the exemptions to the electronic payment requirement, listed in GN 02402.001B,	• advise the individual of Treasury’s electronic payment requirement, • discuss direct deposit and its advantages, see GN 02402.005H, and • if direct deposit is not a viable option, discuss Direct Express and its advantages, see GN 02402.007.
• still does not agree with the electronic payment requirement, and • does not appear to meet the exemption requirements,	explain the electronic payment requirement again and, state the following: • We will continue to pay them by check; • Treasury will contact them (by mail) to obtain a written certification of the exemption request from the electronic payment requirement; and • Treasury will make a determination and inform them of the decision. NOTE: If an individual inquires about the status of an exemption request, refer them to Treasury’s exemption helpline: 1-800-333-1795.
indicates that they meet one of the exemption reasons listed in GN 02402.001B,	explain to the applicant the following: • We will continue to pay them by check; • Treasury will contact them (by mail) about continuing to receive check payments and explain how to apply for an exemption; and • Treasury will make a determination and inform them of their decision. NOTE: In representative payee cases, the rep payee’s circumstance is the basis for the exemption request.
asks of consequences for failing to select an electronic payment	explain the following to the applicant: • We will pay them by check; • Treasury will contact them (by mail) about continuing to receive check payments and how to apply for an exemption; and • Treasury will make a determination and inform them of their decision.

NOTE: Treasury is responsible for determining if an individual is eligible for an exemption. SSA is not responsible for the development of the determination.

F. Post-entitlement interviews

When conducting the interview:

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if the individual reports nonreceipt of a check, discuss direct deposit;
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if the individual does not have an account with an FI, discuss Direct Express;
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assist the individual by informing them of the benefits of direct deposit. For more information about direct deposit post-entitlement interviews, see GN 02402.025; and
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if a current check recipient would like to enroll in direct deposit or Direct Express, enroll the beneficiary, recipient, or rep payee in the electronic payment of choice.

G. Post-entitlement questions about the electronic payment requirement for beneficiaries, recipients, or representative payees after March 1, 2013

If the beneficiary, recipient, or representative payee	Then
has an existing direct deposit or a Direct Express account and wants to change to another electronic payment method,	please see GN 02402.025B.
has direct deposit or a Direct Express account and requests to cancel and receive check payments and does not allege one of the exemptions to the electronic payment requirement,	• inform the beneficiary, recipient, or rep payee of the electronic payment requirement; • offer the beneficiary, recipient, or rep payee assistance to enroll for direct deposit at another FI; • provide the option that they enroll for a Direct Express debit card if they currently have direct deposit. See Direct Deposit as a Form of Electronic Payment in GN 02402.001; and • remove the direct deposit RTN and DAN, verify the mailing address, if applicable. NOTE: If a Direct Deposit Auto-Enrollment Fraud Prevention (DDFP) Block is on the record, the beneficiary, recipient or rep payee may be required to make direct deposit changes to the record in person.
still does not agree with the electronic payment requirement and does not appear to meet Treasury’s exemption requirements,	explain the electronic payment requirement again. If the individual still does not agree, state the following: We will pay them by check: • Treasury will contact them (by mail) about continuing to receive check payments and explain how to apply for an exemption; and • Treasury will make a determination and inform them of the decision. NOTE: If an individual inquires about the status of an exemption request, refer them to Treasury’s exemption helpline:1-800-333-1795.
has direct deposit or Direct Express but requests more information for an exemption from the electronic payment requirement,	explain that Treasury administers the exemption process. Refer the individual to Treasury’s exemption helpline: 1-800-333-1795.

Follow these guidelines when assisting individuals to establish direct deposit:

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Explain the electronic payment requirement in GN 02402.001;
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Offer assistance to establish a bank account;
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Provide the list of area FIs and the types of services they offer;
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If direct deposit is not a viable option, discuss the Direct Express debit card provided by Comerica;
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Inform the beneficiary, recipient, or representative payee of the advantages of the Direct Express debit card in GN 02402.007; and
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Advise the individual receiving benefits that they can change their direct deposit in person, by calling their local field office, or by calling SSA at 1-800-772-1213. (Make sure the individual is aware that to change their direct deposit, they must have their old bank account RTN and DAN).

Title II beneficiaries can also make changes to their direct deposit online at www.ssa.gov/myaccount/ if they do not have an electronic block on their records. Online users will not be able to cancel their direct deposit using the online service.
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When an individual requests to enroll in, change, or cancel their direct deposit, always remind them to notify SSA of any change in mailing address. Failure to do so may cause suspension of benefits when SSA attempts to contact the person.

NOTE: If a Direct Deposit Auto-Enrollment Fraud Prevention (DDFP) Block is on the record, the beneficiary, recipient or rep payee is required to make direct deposit changes to the record in person.

H. List of direct deposit advantages

The majority of Title II beneficiaries, Title XVI recipients, and their rep payees receive payment by direct deposit, and the number is growing daily. The advantages are numerous:

1. Direct deposit is safe because:

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it eliminates the possibility of lost, stolen, or forged checks;
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according to Treasury, a beneficiary, recipient, or rep payee is more likely to make a nonreceipt claim for a check than for a direct deposit payment; and
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beneficiaries, recipients, or rep payees who travel do not have to make special arrangements for someone to safeguard their payments. Treasury will safely deposit the money into their account.

2. Direct deposit is reliable because:

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there are no mail delays;
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payments are traceable through the banking system and problems are resolved quickly; and
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beneficiaries, recipients, or rep payees have a permanent record on their bank statements of the payment amount received each month. They can also contact the FI to verify each deposit.

3. Direct deposit is economical for the following reasons:

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FIs are required to make funds available at the opening of business on the payment date. Beneficiaries, recipients, or rep payees who use direct deposit with interest-bearing accounts can earn the most interest on their money because payments are in the account at the earliest possible time;
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beneficiaries, recipients, or rep payees without bank accounts can avoid check-cashing fees and fees for money orders to pay bills by setting up a bank account and electing direct deposit, and
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beneficiaries, recipients, or rep payees may avoid account fees if they bank with an FI that offers free services to direct deposit customers.

4. Direct deposit is convenient because:

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there is no need to make a special trip to an FI and wait in line to cash the check (especially in bad weather and during times of illness);
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problems associated with checks lost in the mail are eliminated; and
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the beneficiary, recipient, or representative payee does not have to wait for the mail delivery to ensure their check is safe.

I. Frequently Asked Questions (FAQ's) concerning the electronic payment requirement

FAQ's
Questions	Answers
What should I do if I meet the age exemption (born prior to May 1, 1921)?	If you do not want an electronic payment, we will pay you by check. Treasury automatically grants this exemption. You do not need to request this exemption.
What does mental impairment mean?	It means the beneficiary or recipient has a mental or psychological disorder that may prevent them from handling electronic payments. However, the beneficiary or recipient is capable of handling their own affairs and may have a representative payee assist. A mental impairment does not relate to a disability determination. Treasury is responsible for determining if an individual is eligible for an exemption. SSA is not responsible for making the determination. NOTE: In rep payee cases, the rep payee’s circumstance is the basis for the exemption request.
Can you explain remote geographic location?	Treasury defines a remote geographic location as an area lacking the transportation or infrastructure to access ATMs or retailers with point-of-sale capability to utilize electronic financial services. Treasury will determine who meets the exemption.
Will I receive a payment if I have not selected an electronic payment by March 1, 2013?	• We continue to pay you by check; • Treasury will contact you about continuing to receive check payments and how to apply for an exemption; and • Treasury will make a determination and inform you of their decision.

J. Handling inquiries from attorneys and beneficiaries residing outside the United States

If you receive an inquiry from an attorney or a beneficiary residing outside the United States, please inform them that attorneys and beneficiaries residing outside of the United States are not required to receive payments by direct deposit at this time. For a complete list of exemptions, see GN 02402.001.

K. References

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GN 02402.001 Direct Deposit as a Form of Electronic Payment
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GN 02402.007 Direct Express Debit Card Program
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GN 02402.025 Direct Deposit Post Entitlement Interview
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GN 02402.030 Acceptable Types of Financial Institutions and Accounts
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GN 02402.050 Account Titles
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GN 02402.055 Direct Deposit for Representative Payee Cases
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GN 02402.060 Direct Deposit to Trust Accounts
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GN 02402.106 Automated Enrollment
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GN 02410.001 Assignment of Benefits

Social Security

Program Operations Manual System (POMS)

GN 02402.005 Direct Deposit Information for All Types of Interviews