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Department of Veterans Affairs

Eliminate Paper Checks and Require Direct Deposit or Debit Card

Currently, a VA beneficiary's benefits will be suspended if a paper check is returned to us or if pertinent mail is returned due to an invalid address. At this time, I think elimnating paper notification is not prudent because a lot of the beneficiaries may not have the ability to access emails for electronic notification.

 

Therefore, eliminating paper checks would be a better way to cut down on mailing costs, fraud, and time spent processing returned mail and returned checks. Starting January 1, 2013 require all new applicants to provide a bank account for direct deposit or we can send them a debit card which can be replanished monthly. For existing beneficiaries, require that their benefits are phased into the direct deposit/debit card requirement by January 1, 2015.

 

Making electronic payments a requirement will cut down on mailing costs, employee time, and fraud that can be committed with paper checks.

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Idea No. 7665