The Social Security Administration (SSA) has issued a crucial warning to the remaining beneficiaries who still receive paper checks. With the federal government moving all benefit payments to electronic formats, paper checks will no longer be issued after September 30th. This change comes as part of the White House’s executive order titled “Modernizing Payments To and From America’s Bank Account,” which aims to streamline payments, reduce delays, and improve security.
How Many People Are Affected
While the Social Security program serves over 70 million Americans, only a small fraction of about 521,644 beneficiaries are impacted by this transition. The majority, over 99 percent, already receive their monthly benefits electronically. The SSA has been actively reminding those still on paper checks that the deadline to switch is fast approaching, emphasizing that action must be taken before the end of September to avoid disruptions.
Reasons for the Transition
According to the SSA, paper checks are associated with higher costs, slower processing, and increased risks of theft or fraud. Complaints of mail theft have risen sharply since the COVID-19 pandemic, making paper payments increasingly vulnerable. Electronic payments, on the other hand, are far more secure and reliable. The U.S. Department of the Treasury notes that checks are sixteen times more likely to be lost, stolen, or altered compared to electronic funds transfers.
How to Switch to Electronic Payments
The SSA encourages beneficiaries to enroll in either Direct Deposit or the Direct Express Card to continue receiving their benefits without interruption. Direct Deposit can be managed directly through a my Social Security account. Those without a bank account can sign up for a Direct Express Card by visiting www.usdirectexpress.com or calling 1-800-333-1795. The SSA has also used social media platforms to remind recipients that time is running out to make the switch.
Benefits of Electronic Payments
Switching to electronic payments offers more than just security. It also improves efficiency and reduces government costs. Issuing a paper check costs about 50 cents per transaction, while electronic payments cost less than 15 cents. By moving to digital methods, the federal government can save millions annually while ensuring that recipients receive their funds promptly and safely.
Exceptions and Assistance
The SSA has stated that exceptions will be made for beneficiaries who cannot switch due to advanced age or lack of access to necessary banking infrastructure. Paper checks will continue for those who qualify for these exceptions. Temporary checks are no longer issued for initial claims, and anyone seeking an exemption must file a waiver with the U.S. Treasury. The SSA has assured the public that no payments will be paused after October 1 for those unable to transition.
Ensuring a Smooth Transition
SSA Commissioner Frank Bisignano and other officials have emphasized that the agency will provide assistance to anyone navigating this change. Technicians and customer service representatives are available to answer questions and guide beneficiaries through the enrollment process. The goal is to ensure that all Social Security recipients continue receiving their benefits seamlessly as the program fully embraces electronic payments.