WASHINGTON — The use of debit cards for government payments is nothing new, but the government's use of prepaid cards took a giant step into the mainstream when the U.S. Government announced it would put millions of Social Security payments on prepaid cards instead of checks.

Comerica Bank will issue the cards, the Treasury Department's Financial Management Service has announced. The service said that Comerica Bank was chosen because of its experience as a prepaid card issuer for millions of benefit recipients, particularly for state government programs.

"Direct Express represents a significant step forward in the evolution of federal benefit payments," said FMS Commissioner Judy Tillman. "The explosive growth in the prepaid card industry offers an important opportunity for Treasury to give unbanked payment recipients secure, easy access to their funds, at low or no cost to the cardholder. We ultimately would like to see an all-electronic Treasury — with all the security, efficiency and cost savings that would entail. This card takes us closer to that goal by combining the best in payment innovation with sound public policy. If every unbanked federal check recipient signed up to use the card, it would save taxpayers about $44 million per year."