10 Ways to Avoid Fees on Your Social Security Debit Card

Social Security recipients seldom receive a paper check in the mail anymore. Most Social Security benefits are now paid electronically. This typically means a direct deposit to a bank or credit union account. However, 5.5 million people have their federal benefits loaded onto a pre-paid Direct Express Debit MasterCard.

[See: 10 Ways to Increase Your Social Security Payments.]

Direct Express cardholders receive their benefit payments faster and more efficiently than with a paper check. However, they need to take care to avoid penalties and fees when using the card. The new Direct Express Mobile App offers some additional ways to avoid the surcharges. Here's how to keep costs down when using your Direct Express Debit MasterCard.

Limit your ATM withdrawals. Cardholders are permitted one free ATM withdrawal for each deposit to the account every month. If your only deposit is your monthly Social Security payment, that means you get one free withdrawal per month. After that, it costs 85 cents for each additional withdrawal.

Find an in-network ATM. You can only receive that free withdrawal if you use an ATM in the Direct Express network. Using an out-of-network ATM could result in additional surcharges.

Get cash back at participating stores. Instead of hitting up the ATM more than once per month, you can use the debit card to directly make purchases at businesses that accept MasterCard. You can also ask for cash back with your purchase without paying a fee.

Sign up for the Direct Express Mobile App. This free app for Android and iPhone devices allows Direct Express cardholders to check their account balance, view transactions and find fee-free ATMs. Although Direct Express cardholders don't typically have a bank account, more than half (53 percent) have a smartphone, and over 100,000 cardholders have downloaded the app. "The mobile app will show you the closest surcharge-free ATM, so the cardholder can choose to go to that ATM and avoid the surcharge," says Walt Henderson, director of the electronic funds transfer strategy division at the Department of the Treasury. "It also shows the closest retailer that offers cash back with a purchase."

[Read: How to Solve 5 Common Social Security Problems.]

Set up text alerts. You can sign up for text notifications when a new deposit becomes available or your account balance falls below a certain level. You can also use the mobile app to check your balance in a store before making a purchase.

Learn about your card, win a prize. Direct Express cardholders can enroll in the free PayPerks rewards program. Program participants who watch short online financial literacy tutorials will earn points they can enter in a sweepstakes to win cash prizes.

Turn off paper statements. If you want a paper statement mailed to you, it will cost you 75 cents per month. Instead, you can check your balance for free online, at an ATM, by phone or via mobile app.

Avoid account transfers. If you want to transfer the funds from the debt card to your personal bank account, there's a $1.50 charge each time. However, you can set up a free direct deposit to your bank account through your My Social Security account or by calling the Social Security Administration.

[Read: What Millennials Will Get From Social Security.]

Use another card for overseas travel. Using this card in another country can get expensive. An ATM withdrawal outside the U.S. will trigger a triple fee of $3, 3 percent of the amount withdrawn and any fees charged by the ATM owner. A debit card purchase overseas also comes with a 3 percent fee.

Don't lose your card. Cardholders are entitled to one free replacement card each year. After that, it will cost you $4 for each replacement card. And if you need the new card right away, there's a $13.50 overnight delivery charge.

Emily Brandon is the author of "Pensionless: The 10-Step Solution for a Stress-Free Retirement."