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By Pamela Jordan, EFT Strategy Division

A telephone customer satisfaction survey of pilot card-holders conducted by Convergys Customer Intelligence Services, a market research firm, revealed that 85% of customers surveyed were satisfied with the debit card and 88% would recommend it to a family member or friend. The respondents who said they enrolled to avoid concerns about lost or stolen checks were 35%. Reasons for satisfaction with the card varied, with 42% saying that they were satisfied with the ease/convenience of the debit card, 72% with the speed of gaining access to their money, and 26% with the safety/security of the card.

A cardholder's benefit payments will be sent to the cardholder's Direct Express card account monthly on the recipient's payment day, providing the recipient with immediate access to his or her funds. The funds deposited to a Direct Express card account are FDIC-insured and protected by Federal consumer protection regulations, such as Regulation E. The card will allow cardholders to make both personal identification number (PIN)-based and signature-based transactions. Cardholders may use their cards to make purchases and get cash back at retail locations, as well as at automated teller machines (ATMs) or from bank tellers. Direct Express boasts other features, including live or interactive voice response (IVR) customer service to access balance and transaction history, optional paper statements, funds transfer to a bank account, and PIN changes.

Cardholders are allowed one free ATM cash withdrawal per deposit per month, and may carry over any unused ATM withdrawals to the following calendar month. Comerica Bank will assess a cardholder a fee of $.90 for each additional withdrawal. Cardholders may be charged an additional "surcharge fee" by ATM owners outside of the extensive surcharge-free network established by Comerica Bank. Through a national financial education campaign, Treasury will encourage cardholders to use point-of-sale (POS) and bank teller transactions to avoid these fees.

ATM balance inquiries, monthly account maintenance, and overdraft fees are free. In addition, Comerica Bank, at no charge to Direct Express cardholders and at the option of the cardholder, will email, text to cell phones, or call cardholders with account balance information, providing notice when their balance drops below a certain threshold amount which the cardholder designates.

In Spring 2008, some SSA and SSI recipients in Texas, Oklahoma, Louisiana, and Arkansas will receive inserts with their benefit checks introducing the Direct Express card. The program will begin with these states because a high number of their residents are unbanked check recipients. Before fall, Treasury expects Direct Express to be offered nationwide through enrollment phases across the country.

Marketing and education is critical in the nationwide rollout. To ensure success, FMS will partner with all interested parties to educate cardholders about the features, fees, and use of their new Direct Express debit card.

For information about the Direct Express card, contact project lead, Nevelyn Jones, at 202-874-9602 or Pamela Jordan, at 202-874-7143.

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