2011-Direct Express CardholderAnd Usage Survey\OMB Suppt St Cardholder Usage Svy

OMB Supporting Statement

Financial Management Service/Treasury

Direct Express ®Cardholder Satisfaction and Usage Survey

Background and Objectives

The Financial Management Service (FMS), a bureau of the Department of the Treasury (Treasury), has requested Comerica® Bank, acting as Treasury’s Financial Agent, to plan and execute research for the Direct Express® program. To perform this task, Comerica’s agent, MasterCard®, has contracted with KRC Research.

Federal benefit recipients have the option to receive their benefit payments electronically through the Direct Express card program managed by Comerica Bank as the U.S. Department of the Treasury's financial agent.

The Direct Express card was launched in October 2008 prior to Treasury’s proposed rule to eliminate federal benefit payments by check. Beginning May 1, 2011, all new benefit recipients are required to receive their benefits electronically and those already receiving checks will have until 2013 to switch to an electronic payment.

Given that all federal benefit recipients are now required to receive their payment electronically, and that over one million have chosen to do so through the Direct Express card, periodic quantitative research will be conducted among current cardholders.

In June, qualitative research was conducted to explore card satisfaction, usage patterns, and knowledge about how to use the card properly. That research will be used to inform potential cardholder education materials to promote usage and help cardholder better manage their card (for example, avoiding fees).

The quantitative research proposed is important for several reasons. First, it is a tracking mechanism to assess customer satisfaction levels over time. Second, it will help discern areas where cardholders lack knowledge about basic card features, particularly those that help avoid fees. Third, it will allow the tracking of how cardholders use the card over time in ways that are advantageous to customers (such as using the card instead of cash to pay bills and make purchases). Fourth, the survey will assess cardholder interest in new card features to help to improve the cardholder experience. Finally, given that recently more paying agencies such as Veterans Affairs, Railroad Retirement Board, Civil Service Retirement, and other benefit recipients are now eligible to receive their payments on the Direct Express card, the survey will allow us to begin assessing any differences or special needs across new audiences as they begin choosing Direct Express for their federal benefit payment(s).

This research study is a component of the data collection approved in the October 2003 Electronic Funds Transfer (EFT) Market Research Study submitted to the Office of Management and Budget (OMB) referenced in the October 2003 EFT Market Research Study Supporting Statement for Paper Work Reduction Act (PRA) Submission (OMB Control #1510-0074).

Methodology

To accomplish the objectives above, KRC Research will conduct 1,200 15-minute telephone interviews among a random sample of current Direct Express cardholders who have had their card for at least three months. 1,000 interviews will be conducted among a random sample of all cardholders, with an oversample of 200 cardholders who receive Veterans Affairs benefit payments on the card.

This is a one-time collection of information and participation in the survey is voluntary.

Direct Express cardholders are customers of Comerica Bank. Comerica Bank, as part of this research effort, will provide a random sample of 72,000 cardholders to KRC Research.

The results of the research will be grouped for reporting purposes and shared with Comerica, MasterCard, and Treasury only in the aggregate. However, all individual responses will remain confidential and will not be shared with anyone as allowed by law.

Estimated Burden Hours

Completing the telephone survey of 1,200 interviews among Direct Express cardholders is expected to result in a total of 300 burden hours of time.

This time estimate is based on completing 1,200 15-minute interviews (1,200 X 15 minutes)/60 = 300 hours.

Contact

For questions regarding the survey, contact:

Doug Baker

KRC Research

700 13^th Street, NW, Suite 800

Washington, DC 20005

(202) 585-2829

E-mail address: [email protected]

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