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Starting next week on Tuesday, September 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments, and instead move exclusively to electronic payments: either direct deposit or a pre-paid debit card. The change is part of a broader government-wide initiative to modernize its services and improve efficiency and security, to ensure some 70 million Americans receive their monthly benefits promptly. However, this could mean trouble for some older Americans who do not know how to set up direct deposit or will have trouble using a pre-paid debit card. In March, President Trump issued Executive Order 14247, which mandates the transition to electronic payments for all federal disbursements by September 30. “Less than one percent of Social Security Administration beneficiaries currently receive paper checks,” a Social Security spokesperson told Fast Company in an email on Friday. “SSA is proactively contacting those beneficiaries to alert them about the change and the process to enroll in direct deposit or receive Direct Express cards.” In cases where a beneficiary has no other means to receive payment, the SSA said it will continue to issue paper checks. According to the Treasury Department, this shift could save the federal government millions of dollars each year. Issuing a paper check costs about 50 cents, while an electronic payment (or EFT) costs less than 15 cents. Electronic payments are also more secure. Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, thus increasing the risk of fraud, according to the agency. How do I sign up for Social Security direct deposit or a pre-paid debit card? For more details, and to learn how to enroll in direct deposit or obtain a Direct Express pre-paid debit card, visit www.ssa.gov/deposit/. To enroll in direct deposit, go online to your personal “my Social Security account” (or create an account, if you don’t have one) on the Social Security Administration’s website. Enrollment in direct deposit and Direct Express Debit Mastercard are also available through the Treasury’s Go Direct website, or via phone at 1-877-874-6347. For additional questions, call the Social Security Administration at 1-800-772-1213.
Category:
E-Commerce
The Federal Reserves favored inflation gauge accelerated slightly in August from a year earlier. The Commerce Department reported Friday that its personal consumption expenditures (PCE) price index was up 2.7% in August from a year earlier, a tick higher from a 2.6% year-over-year increase in July and the most since February. Excluding volatile food and energy prices, so-called core PCE inflation showed a 2.9% increase in prices from August 2024, the same as in July. The increases were what forecasters had expected. Prices rose 0.3% from July, compared to a 0.2% increase the month before. Core prices rose 0.2%, the same as in July. Separately, the report showed that inflation-adjusted consumer spending rose a healthy 0.4% from July, the same as the month before, largely on a 0.7% increase in spending for goods; spending on services such as travel and dining out rose just 0.2%. The resilience of the U.S. consumer was on show once again,” Michael Pearce of Oxford Economics wrote, though he cautioned that spending is being driven by households at the top of the income distribution.” Incomes rose 0.4%, the same as the month before. Income for the self-employed and business owners rose 0.9% for the second straight month. Wages and salaries rose 0.3% from July, dipping from a 0.5% increase the month before. Inflation has come down since rising prices prompted the Fed to raise its benchmark interest rate 11 times in 2022 and 2023. But annual price gains remain stubbornly above the central banks 2% target. Last week, the Fed went ahead and reduced the rate for the first time this year, lowering borrowing costs to help a deteriorating U.S. job market. But its been cautious about cutting, waiting to see what impact President Donald Trumps tariffs on imports have on inflation and the broader economy. For months, Trump has relentlessly pushed the Fed to lower rates more aggressively, calling Fed Chair Jerome Powell Too Late and a moron and arguing that there is no inflation. Last month, Trump sought to fire Lisa Cook, a member of the Feds governing board, in an effort to gain greater control over the central bank. She has challenged her dismissal in court, and the Supreme Court will decide whether she can stay on the job while the case goes through the judicial system. The Fed tends to favor the PCE inflation gauge that the government issued Friday over the better-known consumer price index. The PCE index tries to account for changes in how people shop when inflation jumps. It can capture, for example, when consumers switch from pricier national brands to cheaper store brands. By Paul Wiseman, AP economics writer
Category:
E-Commerce
Christine Renauld, CEO and Co-founder of Braindate, discusses how her app is revolutionizing networking by turning it into purposeful, meaningful conversations.
Category:
E-Commerce
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