The federal benefits check has developed into a social and cultural icon. The checks have generated a “first of the month” economy in some places, as lottery revenue increases and lines at liquor stores and discount retailers swell. But now, the days for such rituals are numbered.
In May, the government will no longer pay someone eligible for benefits with a mailed check. Instead, the money will be electronically deposited directly into a bank account or made accessible by a debit card. And by March 2013, the 10 million people who receive checks, out of 70 million people in all, must switch over to direct deposit or use a card.
For the government, the policy is in line with a trend toward paperless banking that will curb theft and save $120 million a year in costs.
But the first of the month won’t be the same anymore.
The change will have social and cultural impact. Some recipients have resisted it because they cannot open an account, or simply because they feel more comfortable with a check in hand.