Social Security Administration: ATM Cards For Representative Payees

Question:

Though the Social Security Administration "allows" representative payees to have checking accounts for the benefit of the recipient, what do you think about ATM cards being issued?

Answer:

SSA strongly encourages representative payees to open a checking account so they will be able to account for their expenditures on behalf of the party entitled to the benefit. Some banks take the approach that an ATM card is inconsistent with the representative payee's accounting responsibility - as a matter of bank policy only, they do not issue ATM cards on representative payee accounts.

The reality is that the representative payee could provide an accounting just as easily if it retains the receipts for the cash it expended from ATM withdrawals...denying them the ATM card may be a little paternalistic.

Try posting a query in Bankers Threads asking other banks if they have made a policy decision in this area and what the basis for it was.

First published on BankersOnline.com 9/16/02