Social Security to switch Direct Express cards this year

The Social Security Administration and the Treasury Department are preparing a switch for millions who rely on Direct Express prepaid debit cards. Comerica is being replaced by Fifth Third Bank as the financial agent, and current cardholders will eventually re

By late this year, millions of people who receive Social Security and Supplemental Security Income benefits on prepaid debit cards may notice something small—but consequential—in the mail. The change isn’t about the benefit itself. It’s about which bank handles the Direct Express program.

The federal government is also moving to reduce paper checks for federal payments, with the Social Security Administration planning a full transition to electronic payments for all beneficiaries by the end of the year.

More than 70.6 million Americans receive Social Security and Supplemental Security Income benefits, and more than 99% of them already get payments electronically. That includes payments delivered through direct deposit to checking accounts and through Direct Express prepaid debit cards.

For beneficiaries who still receive paper payments, the agency’s timeline is already in motion. The federal government will begin phasing out paper checks for Social Security and other federal payments by September 30.

The bank change for Direct Express

Direct Express cardholders have another shift to watch: the Treasury Department is changing the bank that runs the debit cards used in the program. The Social Security Administration said in a May 18 notice that Fifth Third Bank will replace Comerica Bank as the financial agent for the Direct Express card program.

The agency said that new Direct Express card enrollees are already receiving Fifth Third Bank cards.

For people who already have an existing Direct Express card, the transition is expected to take place later this year or early next year. The switch will affect about 3.6 million cardholders, according to The Motley Fool.

When will cardholders get new cards?

The Social Security Administration says the Treasury Department will begin sending current Direct Express cardholders a new Fifth Third Bank card to replace their current Comerica card later this year. Once the current card expires, beneficiaries will receive a new Fifth Third Bank-issued card.

The SSA says recipients will be notified before their new card arrives, and that current cards will remain fully functional during the transition.

Direct Express says the new cards will work just the same as current cards, with benefits arriving on the same schedule.

Before the replacement shows up, SSA says people should make sure they don’t miss critical notices. Beneficiaries are urged to keep their contact information up to date so the agency knows where to send the new debit card and other communications.

Motley Fool contributing retirement analyst Kailey Hagen. in a suggestion cited alongside the SSA guidance. urged cardholders who have moved recently to ensure the Social Security Administration has updated contact information. The agency’s message is consistent: keep details current so the replacement doesn’t get delayed or sent to the wrong address.

Where the pieces connect

The timeline for electronic delivery is moving from a preference to a mandate—paper checks will be phased out by September 30. and the SSA plans to fully transition beneficiaries to electronic payments by the end of the year. At the same time. the Direct Express system is being rerouted at the bank level. replacing Comerica with Fifth Third Bank. even as the agency and Direct Express both say the payment schedule won’t change.

In practice, the key risk for cardholders isn’t losing benefits on paper—it’s missing the administrative steps that determine whether a replacement card arrives smoothly.

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