U.S. Treasury mulls proposals to supply benefits via cards: agency's goal is to reduce check expenses related to the distribution of Social Security and other federal payments.(Debit Card Report)

The Financial Management Service bureau of the U.S. Department of the Treasury has received 15 applications from financial institutions interested in providing nationwide debit card services to unbanked check recipients of Social Security and other federal payments, such as veteran or railroad retirement benefits.

Bureau representatives declined to reveal the companies that applied. The deadline to submit proposals was Oct. 2.

The Treasury Department's goal is to reduce the number of checks disbursed by promoting direct deposit and by increasing the number of electronic funds transfers to unbanked recipients with a prepaid debit card program.

The Financial Management Service bureau, which maintains responsibility for disbursing federal benefits, …