Social Security To End Paper Checks, Pushes Full Transition To Electronic Payments
The Trump administration is moving forward with a plan to eliminate paper checks for Social Security benefits, aiming to modernize how federal payments are delivered. Beginning September 30, the Social Security Administration (SSA) will stop issuing paper checks to most beneficiaries. This change will affect over half a million people, about 0.8% of all recipients, who must now switch to electronic payment methods.
The SSA announced the move in mid-July, directing recipients who still receive paper checks to choose one of two options: direct deposit into a bank account or a prepaid Direct Express debit card for those without bank access.
The shift is part of a broader federal effort to improve payment security and reduce costs. The U.S. Treasury Department confirmed in May that all federal disbursements — including Social Security, tax refunds, and vendor payments must go electronic by the September deadline, in line with a presidential executive order.
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'Paper checks are increasingly the front door for fraud,' the Treasury stated. Electronic payments not only reduce fraud risks but also cut costs — each paper check costs about 50 cents to issue, compared to less than 15 cents for electronic payments.
Despite the mandate, some exceptions will be allowed.
Senator Elizabeth Warren said she received assurances from SSA Commissioner Frank Bisignano that people who truly need paper checks will not be left behind. While the SSA hasn't publicly confirmed this, a spokesperson told CNN that beneficiaries will be contacted about their options and that paper checks will continue for those with no viable alternatives.
Waivers for paper checks will be granted only under limited circumstances: recipients with mental impairments, those living in remote areas without electronic infrastructure, or individuals aged 90 or older. Applicants can request a waiver by calling 1-855-290-1545 or by submitting a form available through the GoDirect website.
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Social Security To End Paper Checks, Pushes Full Transition To Electronic Payments was originally published on wolbbaltimore.com
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