This is interesting, and probably long overdue:

The U.S. Department of the Treasury's Financial Management Service (FMS) has announced that a prepaid debit card for Social Security payments and other federal benefits is now available. The Direct Express(R) Debit MasterCard(R) card - designed as a safe, convenient alternative to paper checks that people without bank accounts may choose - is currently being introduced in 10 states, and will be rolled out nationwide this summer.

Unlike some other types of debit cards, there are no upfront fees to get the new debit card, and no monthly fees or purchase transaction fees, although there may be fees associated with ATM withdrawals, depending on the bank where you take money out. (The card will offer one free ATM withdrawal per "check", and cardholders could also get around that by doing a "cash back" purchase - asking stores to debit a higher amount than what is owed and getting the difference back in cash.)

A direct deposit into the card account would be made each month, instead of the paper check being sent out.

It sounds as though the biggest motivation for this from the government's perspective is to give those without bank accounts a cheaper way to get their money, versus using check cashing facilities. But the move could also save a ton of taxpayer money, as paper checks won't have to be issued to those who sign up, eliminating a lot of administrative overhead, and a lot of paper and check creation costs.

If you get Social Security and want to use this new option, click here for the Direct Express Web site to sign up.