Payment Options to Receive SSDI Benefits


Over the last ten years we’ve seen big changes in how we send and receive payments. These changes have come to the Social Security Administration (SSA) as well. In the past many people received their check for Social Security Disability Insurance (SSDI) benefits by mail. Now many people receive their SSDI benefits by direct deposit into a bank or credit union checking account. In the near future the SSA will require all disability beneficiaries to accept electronic payments.


SSDI Electronic Payment Options


The SSA offers two options for electronic payments: direct deposit or electronic debit card.


Direct Deposit


We recommend signing up for direct deposit if you prove that you’re disabled and are awarded SSDI benefits. Here are some reasons why it may be the best option for you:


  • It’s affordable. Many banks will offer you a free checking account that does not require you to keep a minimum balance.


  • It’s efficient and reliable. Your SSDI payment is deposited into your bank account on the same day each month. You then have control over the money from any phone or computer instantaneously. Most checking accounts also give you the ability the pay your bills electronically at no additional charge, so you can get better organized.


  • It’s protected. The FDIC insures the deposits in your bank account up to $250,000. So you don’t have to worry about someone stealing your check or cash.


But what about debt collectors? Can’t they seize the money in my bank account? No. Under federal law it is illegal for a creditor to seize or garnish your SSDI payments unless you give permission.


Debit Card


Still not sold on direct deposit? That’s fine. You may receive your SSDI benefits on an electric debit card. This is the best option for those of you who do not have and do not want a bank account or who do not want your monthly disability checks deposited into a bank account. For example you may not want your SSDI benefits deposited into a bank account that someone else has access to.


Here are some of the benefits of using an electronic debit card issued by the U.S. Treasury Department to receive your SSDI payments:


  • Protection from creditors. Similar to direct deposit, it is illegal for a creditor to seize or garnish your disability benefits without your permission. Benefits put on the card are protected from creditors.


  • Efficient: Your SSDI money will be loaded onto your card on the same day each month. Then you can use it however you want.


  • It’s insured. Money placed on your card is protected and insured by the FDIC up to $250,000.


  • Easy to use. You can use your card to make purchases online or at stores. You can even use it to get cash from ATMs or to pay your bills online.


There is no fee to use the card.


Discuss Your Payment Options with a Disability Attorney


Have a question about applying for Social Security disability in Virginia, winning your case at a disability hearing, or making sure that your claim is processed efficiently after you’re approved? Call, text, or email Virginia Beach disability lawyer and Richmond SSD attorney Corey Pollard for a free consultation. We’ve helped thousands of injured workers and disabled children obtain benefits.