"Automated
Transfer Accounts"— "money electronically
deposited into your account"
These may be terms that concern
or even scare you; buy they shouldn't. You may
wonder how anything so electronic can be "Simple,
Safe and Secure!" Do you know that every month
your monthly benefit checks are produced by
one or more high-speed electronic computers?
This is the only way that the millions of Federal
benefit checks processed each month are able
to get out on time.
But do you know what else is involved in getting
your check each month? Follow your check from
the computer until you cash it—and then
let's see what happens when others receive their
payments through Direct Deposit.
At the middle of any given month, your benefit
payment information is stored in a computer
with millions of other payment recipient's.
At that time, the computer doesn't know if you
are receiving a check or getting your payment
through Direct Deposit. As the computer runs,
it processes every benefit recipient's payment
file. When it finds people who are receiving
a Direct Deposit, it places their information
in an electronic file to be processed later.
When it processes your record, and all other
records for people receiving checks, it places
that information in a different electronic file
for later processing.
Once the computers have finished processing
payments for the month, all of the information
is stored in "electronic" files. Those individuals
who have elected to receive their payments through
Direct Deposit are now one step away from being
paid...
But let's go on and see how you get your check.
The electronic files created during the payment
processing are now delivered to various locations
where they are used as input into high speed
check printing machines. It takes hours to print
the millions of checks which will be going out.
Once all of the checks have been printed, they
are then moved to another high- speed machine
where they are stuffed into an envelope. Again
this process takes hours to finish for the millions
of checks issued each month.
After your check has been printed and placed
in an envelope, it is ready to be delivered
to a Postal processing station where it will
finally be on its way to you.
At the postal station your check is sorted and
placed in a mail truck that will deliver it
to the main post office in your area.
At the main post office in your area, your check
will be sorted to be delivered to the post office
in your city.
When your check is received at your local post
office, it is sorted again so that your delivery
person can bring it to your address.
On the 1st, 3rd, or whatever day of the month
you receive your check, your postal carrier
delivers.
You finally have your check in your hands, but
what now? You or someone you trust will need
to cash your check.
You will probably do one of the following to
cash your check:
You may visit the convenience store where you
can get your check cashed.
You may go to a check-cashing outlet, where
you can get your check cashed for a fee.
You may even visit a local bank, savings and
loan or credit union where you can get your
benefit check cashed—or you may deposit
the check into your checking or savings account.
Congratulations, you have safely cashed your
monthly benefit check. But let's go see how
others who have their payments directly deposited
are doing.
Remember back 15 to 20 days ago when the main
computers were first generating your check record?
At that same time, another person's electronic
payment was also created. While your information
was moving through the check printing, envelope
stuffing, and mail delivery process, the other
person's records were being electronically transferred
through the Automated Clearing House or
A
C H system as a direct deposit.
A C H is the same payment process that companies
use to pay their employee. It is the fastest
and most economical way for them to move money.
While your check was being produced, within
a matter of minutes, the millions of benefit
payments made through Direct Deposit were electronically
transmitted directly to the payment recipients'
bank, savings and loan or credit union.
The other person's bank has automatically deposited
the money into their accounts on the payment
date. And if the payment date had been a holiday
or weekend, the money would have been deposited
yesterday, or last Friday. The money is always
deposited and available on the other person's
scheduled payment date or the preceding business
day if the payment would arrive on a weekend
or a holiday. Others never have to wait for
their payment or worry about it being late.
If others maintain a traditional checking account,
they may begin to pay bills, run errands and
visit the grocery without any special trips
to cash or deposit their benefit check.
If they have opened an E T A, they have many
options for getting their money.
They may have gone to their bank today to make
a withdrawal.
Or if they were in a hurry, they may have stopped
at an automated teller machine ( A T M ) to
make a withdrawal. They can make at least 4
free withdrawals a month.
Or they may have just gone on to the store to
pick up some things. If their bank allows it,
their E T A may also have a Debit Card which
allows them to make a purchase and have the
purchase amount taken out of their account automatically.
They are able to have the safety and security
of not having to carry around large amounts
of cash.
So why not join others benefiting from Direct
Deposit?
If you already have a checking or savings account,
sign up for Direct Deposit today.
If you don't have an account, open an E T A
and sign up for Direct Deposit.
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