(PRWEB UK) 3 February 2013
The United States Treasury Department has taken the decision to phase out federal benefits paid by cheque. Beginning on 1 March 2013, all residents who receive social security and supplemental security income will receive their benefits via an electronic debit process. Recipients must open a direct deposit or account in order to continue receiving funds.
Nationally, 93 percent of government payments are made electronically, leaving around five million cheques sent in the post every month. Treasury representative Tepricka Morgan explained, “Electronic payments are definitely safer than posted cheques. Around 440,000 cheques were lost or stolen nationwide in 2011, and $70 million worth of cheques were fraudulently endorsed.” In addition to solving these problems the change to electronic payment will save the US Government $1 billion over the next ten years.
SmartDebit, a leading UK payments processor, offer an end-to-end service Direct Debit service, from consultancy to implementation, account management, processing and contingency. A representative from the company added, “Council’s in the UK have been moving towards online, electronic payment processing in recent years to cut costs, streamline operations and drive efficiencies. It is no surprise that the US has decided to do the same to distribute federal benefits. Electronic payments are more secure, speedier, accurate and can be easily traced.”
SmartDebit continues to follow global news on electronic payment.
SmartDebit is the UK’s leading Direct Debit collections service, specialising in payment processing services since 1998. A Bacs approved Bureau, scoring ‘Excellent’ in all five categories of the Bacs audit, and ISO 27001 compliant. Providing a complete range of services: Outsourcing; SmartDebit-Admin cloud based portal; SmartDebit-Online payer sign up; SmartDebit-API integrated solution and SmartDebit-Contingency.