US aims to switch millions of benefit recipients to electronic payments

The Treasury Department is making a big push to go green -- and save a lot of green -- by switching millions of people who receive Social Security and other federal benefits from paper checks to electronic payments. The move is expected to save the government more than $300 million over the first five years and $125 million each following year.

It costs about $1 to cut and mail a check but only 10 cents for a direct deposit. Each year, the Treasury issues more than $135 million benefit payments via paper checks. Beginning next March, new enrollees for Social Security, Supplemental Security Income, veterans, railroad retirement and federal civil servant retirement benefits will get their money through electronic transfers. People already receiving checks will be shifted to all-electronic payments beginning March 1, 2013. If someone doesn't have a banking relationship or doesn't want to receive payments by direct deposit, there's the option of the Treasury's Direct Express debit card. A million people already get their benefits though the debit card.