Following this announcement, the Fiscal Service has selected BNY as the new financial agent for the program after conducting a competitive selection process, as well as evaluating several proposals from multiple financial institutions.
Based on this review, The US Department of the Treasury’s Bureau of the Fiscal Service determined that BNY’s expertise, suite of features, and customer service options will enable an evolution in the Direct Express program by providing enhanced efficiency and services tailored to the program’s customer base.
Throughout this initiative, clients and customers will have the possibility to rent and leverage other bill payment services, such as virtual cards, chat and text user service, cardless ATM access, as well as dispute filling, in-person identity authentication, and more.
The new agreement was set for five years, beginning January 3, 2025, with cardholder transition phased to minimise impact and ensure optimised customer support. At the same time, client migration communication is not expected to begin sooner than the spring of 2025. The current program financial agent is set to continue to service existing cardholders until they go through the process of registering for a new account.
The Direct Express program was developed in order to provide US customers with a prepaid debit card to receive their monthly federal benefits. The program also offers client protection solutions, available to prepaid account owners, including for fraud and less.
The Fiscal Service is expected to continue to provide Direct Express cardholders with low- to no-cost access to financial resources and education through the Financial Education Center. Both companies will focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
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