From eCommerce to eBanking, digital commerce is changing the way people around the world shop, pay and be paid. The Electronic Payments Association explains that the average business saves between $2,000 and $7,000 annually by using electronic payments rather than paper checks.
The cost savings, enhanced security, broad convenience and universal acceptance of electronic payments have recently prompted the U.S. government to mandate the trend and extend the benefits of digital payments to Social Security payment recipients. Beginning March 1, 2013, paper checks for Social Security benefits will virtually disappear.
This will affect five million Americans still receiving Social Security or Supplemental Security Income benefits by check, and save taxpayers more than $100 million a year. The switch will enhance security, help decrease fraud and eliminate theft of paper checks from mailboxes by issuing funds directly to the recipient, electronically.
It’s clear that more than ever technology is shaping the way we live nearly every aspect of our lives. Single function currency like cash and check comes with significant limitations, especially when consumers shop online, move between payment devices and need their payments to move seamlessly with them and work reliably wherever they shop. Using credit, debit, and prepaid cards is the norm for many Americans and this is one more step in the march away from paper checks and cash.
For more information on the transition to electronic benefits, visit: http://www.ssa.gov/
Posted by: Jennifer Schulz, Global Head of eCommerce on February 19, 2013 at 4:19 pm