No More Paper Checks As Social Security Benefits To Be Paid Electronically

The U.S. government is transitioning Social Security and other federal benefit payments to electronic formats by the end of this month. This shift follows an executive order signed by President Donald Trump in March, mandating the move to electronic payments by September 30. The change aims to reduce fraud and spending, as electronic funds transfers are less prone to theft and cost less than paper checks. It will also save the government money as it costs around 50 cents to send out a paper check compared to less than 15 cents to send the money electronically.

Currently, fewer than 1% of Social Security beneficiaries receive paper checks, and more than 97% of Veterans Administration benefits are already delivered electronically. Beneficiaries who receive payments electronically do not need to take any action. However, those still receiving paper checks are encouraged to enroll in direct deposit through federal agencies or online at GoDirect.gov.

For those without a bank account, options include opening one through FDIC: GetBanked or MyCreditUnion.gov, or using a Treasury-sponsored debit card. The Treasury Department will continue issuing paper checks in specific cases, such as for individuals in remote locations or those with certain impairments.

Despite the benefits of electronic payments, some individuals may face challenges, particularly those who are homeless, disabled, or unbanked. The Treasury Department is reviewing waiver guidelines to accommodate such cases. Beneficiaries are advised to verify any requests related to electronic payments through official government channels to avoid scams.