On March 1, 2013, VA will stop issuing paper checks to comply with Department of Treasury policy. Veterans and other beneficiaries who do not have electronic payments for their federal benefits by that time will receive their funds via a pre-paid debit card. Called the Direct Express card, it is issued by Commercial Bank as the financial agent of the U.S. Treasury.
As a prelude to going to totally paperless payments, those receiving VA compensation or pension benefits for the first time after May 1, 2011 will automatically receive the benefits electronically. Anyone already receiving federal benefit payments electronically will be unaffected by the changes. To learn more about the federal government’s switch to direct deposit – or to change VA benefits to direct deposit -- visit http://www.godirect.org/. Information about the federal government’s “Go Direct” campaign is also available at 1-800-333-1795.
Along with payments for VA benefit, the change will also affect recipients of payments from Social Security, Supplemental Security Income, Railroad Retirement Board, and Office of Personnel Management.