No more paper checks: Social Security moving to 100% electronic payments this fall
Later this year, only electronic payments will be used for benefit payments, the agency announced July 14 as part of an effort to modernize its systems and improve service delivery.
"By moving to electronic payments exclusively, we aim to improve efficiency, security, and ensure beneficiaries receive their monthly benefits promptly," the agency wrote in a blog post.
Less than 1% of beneficiaries have not yet switched to electronic payment methods and still receive paper checks, according to the SSA. The agency is urging those to enroll in either direct deposit or use the Direct Express card before the late September deadline in order to receiving their monthly benefits on time.
Those who still receive paper checks will be sent notices to transition as well as instructions on how to transition on all benefit checks, the SSA said.
Social Security change coming in July: Agency begins taking back 50% of overpayments
When will paper checks no longer be an option?
Starting Sept. 30, 2025, the Social Security Administration will stop issuing paper checks for benefit payments. All beneficiaries will be required to switch to electronic payments.
Social Security: When do you get your payment for July? See schedule
Why the change?
The SSA said the switch from paper checks to electronic payments will minimize delays in payments and reduce the risk of fraud.
Citing the U.S. Department of the Treasury, the SSA said electronic payments cost roughly 35 cents less than paper checks, essentially saving the federal government millions of dollars annually.
The agency added that the transition will provide a safer and more secure method to receive benefits, saying paper checks are 16 times more likely to be either lost or stolen.
How to switch to electronic payments
Social Security beneficiaries can switch from paper checks to electronic payments online through their personal my Social Security account.
The agency has technicians available to support those who need tech support Monday through Friday from 7:30 a.m. until 4 p.m. ET.
Another Social Security payment coming in July
As soon as late July, some beneficiaries who have been overpaid could have their monthly Social Security benefits cut in half.
The SSA announced in April that it would begin withholding 50% of benefit payments to overpaid recipients. That marked a partial backtrack from the month prior, when the agency revealed plans to withhold all of a recipient's benefit until their overpayment was recouped.
Previously, the agency had been withholding only 10% of a recipient's benefits to recover overpayments. The SSA had lowered the recovery rate to that level after negative media coverage in 2023 about the agency's collection process, reporting how some had lost their homes after benefits were cut off to make up an overpayment. "Innocent people can be badly hurt," then-Social Security chief Martin O'Malley said, according to the Detroit Free Press, part of the USA TODAY Network.
Contributing: Mike Snider, USA TODAY
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
16 minutes ago
- Newsweek
Social Security Update: Thousands See Their Payments Reduced
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Some Social Security recipients are to face steep benefit reductions this month, as the Social Security Administration (SSA) rolls out a new policy to recover billions in overpaid benefits. Beginning in late July, the agency started withholding 50 percent of monthly payments from those with outstanding overpayment debts, a fivefold increase from the previous standard. The SSA announced the change in April, following years of scrutiny over its handling of overpayments. Between 2020 and 2023, the SSA reported an estimated $32.8 billion in OASDI and SSI overpayments How Do Overpayments Happen? Overpayments are often caused by reporting delays, benefit miscalculations, or unreported income, particularly for those on disability or early retirement. "Social Security overpayments tend to occur from errors in reporting, such as a time lag that naturally comes from reporting income via W-2, incorrect benefit calculations, failure to offset other government pensions, or changes in family status, i.e. divorce, death of a beneficiary, or children aging out of eligibility," Thomas Savidge, economist at the American Institute for Economic Research, told Newsweek. Withholding is when the SSA keeps part of a monthly benefit payment back until the debt is paid off. File photo of a Social Security card stacked between $100 bills and U.S. Treasury checks. File photo of a Social Security card stacked between $100 bills and U.S. Treasury checks. GETTY In March, the SSA initially proposed withholding 100 percent of monthly benefits until debts were repaid, but later revised the plan. Under the Biden administration, the withholding rate was set to 10 percent following widespread reporting on the profound impact overpayment debts had on Social Security recipients, many of whom had no idea they were being paid too much money. While the 50 percent rate is less severe, it still raises alarm among experts and advocates concerned about the policy's impact on low-income retirees and disabled individuals who rely on Social Security as their primary income. "Collecting 50 percent of someone's Social Security benefits is very extreme. Most people on Social Security that has had an overpayment has no other income. Taking 50 percent of someone's income leaves them without the means to survive," Ashley F. Morgan, an attorney and owner of Ashley F Morgan Law, told Newsweek. Morgan said her firm frequently sees these cases, particularly among people receiving disability benefits. "If you earn more than allowed for a period of time, then your benefits have to stop," Morgan said. "Too often people earn money and fail to report the earnings to the Social Security Administration and the government only finds out after the overpayment has happened." She also cautioned early retirees: "If you are currently 64 and collecting Social Security retirement and also working, you need to monitor your earnings. If you work too much, they will reduce next year's earnings to offset the overpayment." For those struggling to manage repayments, both experts highlighted potential options. "For those who feel that 50 percent withholding is unjust or causes severe hardship, there is legal recourse," said Savidge. "They can request a lower withholding rate, a waiver of recovery, and even appeal the overpayment decision." Have you been impacted by a recent overpayment notice from the SSA? Get in touch at
Yahoo
22 minutes ago
- Yahoo
Bessent calls Trump baby accounts 'backdoor for privatizing Social Security'
By Jasper Ward WASHINGTON (Reuters) -U.S. Treasury Secretary Scott Bessent on Wednesday likened new savings accounts in a bill President Donald Trump this month signed into law to "a backdoor for privatizing Social Security," speaking at an event sponsored by Breitbart. The accounts, which were part of Trump's sweeping tax-cut and spending bill, are meant to encourage new parents by offering a one-time $1,000 government contribution. According to the White House, the accounts will track a stock index and allow for additional private contributions of up to $5,000 per year. Bessent said some details, including distribution dates and what funds could be accessed for, still needed to be worked out. "But in a way, it is a backdoor for privatizing Social Security," Bessent said. "Like, Social Security is a defined benefit plan paid out that - to the extent that if all of a sudden these accounts grow, and you have in the hundreds of thousands of dollars for your retirement - then that's a game changer too." The Social Security administration did not immediately comment. Social Security was launched in the 1930s as a federally administered system of social insurance and as a retirement program for U.S. citizens and some non-citizens. The program is due to run short of funds to pay full benefits in 2033, its annual trustees' report said in June. U.S. Senator Ron Wyden, the top Democrat on the Senate Finance Committee which oversees the agency, expressed concern over Bessent's remarks and accused the Trump administration of wanting to privatize Social Security. The Trump administration has not indicated a move towards doing so. In a post on X on Wednesday afternoon, Bessent said the "Trump Baby Accounts" will supplement Social Security's guaranteed payments. He said the Trump administration is committed to protecting Social Security. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Newsweek
an hour ago
- Newsweek
Kansas Officials Defy Trump Admin Over SNAP Benefit Order
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Officials in Kansas have declined to comply with a SNAP benefit data-sharing request from the U.S. Department of Agriculture (USDA) over concerns it could breach recipient privacy. Newsweek has contacted the USDA and the Kansas Department for Children and Families for comment via email outside regular working hours. Why It Matters The USDA, which oversees the Supplemental Nutrition Assistance Program (SNAP), first announced a plan to make states share benefit recipient data—including names, dates of birth, personal addresses and Social Security numbers—in May as part of President Donald Trump's executive order to increase data sharing across federal and state programs. The agency renewed its push last week when it again ordered states to comply with the order. However, the latest directive has been met with a united legal challenge from 19 states and Washington, D.C., that contend the order violates federal privacy laws and the U.S. Constitution. Kansas, while not part of the multistate legal action, has refused to hand over the requested data. SNAP benefit sign at the entrance to a Big Lots store in Portland, Oregon, in October 2020. SNAP benefit sign at the entrance to a Big Lots store in Portland, Oregon, in October 2020. GETTY What To Know In a letter to the USDA, the Kansas Department for Children and Families (KDCF) said the state could not comply with the request as it could "place KDCF in a position of potential liability in the event a court finds that the USDA's demand violates federal law." The letter, sent to Gina Brand, the USDA's senior policy adviser for integrity, from KDCF Secretary Laura Howard, said the request was also difficult to comply with in a "practical matter." "Producing the amount of data being requested will require significant time, manpower, and expense," the letter said. "Requiring the production to occur no later than July 30, 2025, presents an unreasonable burden that simply cannot be met." According to the USDA, the goal of the data collection is to help root out fraud in the program, which serves some 42 million people nationwide. While the agency's directive does not mention immigration enforcement as a reason for data collection, critics of the order have raised concerns that it could be used to facilitate deportations. Regarding the multistate lawsuit, the USDA previously told Newsweek that it would "not comment on pending litigation." What People Are Saying Kansas Department for Children and Families Secretary Laura Howard said: "DCF is committed to the security of Kansans' personal information and maintaining confidentiality consistent with state and federal law. This demand for personal information goes beyond the scope of administering the program and puts in jeopardy the privacy of hundreds of thousands of Kansans who depend on SNAP to put food on their tables." Agriculture Secretary Brooke Rollins said in a May 6 news release announcing the data-sharing plans: "President Trump is rightfully requiring the federal government to have access to all programs it funds, and SNAP is no exception. For years, this program has been on autopilot, with no USDA insight into real-time data. The Department is focused on appropriate and lawful participation in SNAP, and today's request is one of many steps to ensure SNAP is preserved for only those eligible." What Happens Next The USDA has not publicly responded to the letter from Kansas.
