Noteboom The Law Firm

Veterans Losing Paper Checks for Electronic Payments or Debit Cards in 2013

December 29, 2010 - March 1, 2013 will be the last day veterans will receive their Department of Veterans Affairs (VA) benefits via paper checks. Department of Treasury officials made it known there was a new rule dealing with electronic benefit payments. The rule expands the security and ease in which veterans receive their federal benefits via electronic means. Consequently, the VA is strongly encouraging all veterans receiving federal benefits to begin receiving them electronically as soon as possible.

For most veterans, the VA benefits they receive are essential to their lives. Direct deposit is the best way for veterans to have their benefit payments deposited into their bank account. According to VA Sec. Eric Shinseki, veterans choosing to use electronic means to deposit their benefits increase the payments': 

• Safekeeping;
• Convenience; and
• Dependability

Veterans who do not have electronic payments established by March 1, 2013, will receive pre-paid debit cards as opposed to checks. Acting as a financial representative for the U.S. Treasury Department, Comerica Bank will deploy the debit cards, which will be named the Direct Express Card.

Changes made to the electronic deposit rules will not affect veterans already receiving payments via direct deposit. For those veterans who will receive their first disability or pension payments after May 1, 2011, they will not have an option: their payments will only be delivered electronically.