The Social Security Administration (SSA) is making a significant change to how beneficiaries receive their monthly payments. Starting on September 30, 2025, the agency will discontinue issuing paper checks for benefit payments, transitioning to electronic payments exclusively. This shift is part of a broader government initiative to modernize payment systems and enhance service delivery.
Why Is the SSA Making This Change?
The SSA has emphasized that moving to electronic payments will improve efficiency, security, and the prompt delivery of monthly benefits. According to the agency, Electronic Fund Transfers (EFT) are faster and more secure than paper checks. Moreover, the government will save money as it costs about 50 cents to issue a paper check compared to just 15 cents for an EFT.
Another key reason for the change is security. Paper checks are 16 times more likely to be lost or stolen than electronic payments, which increases the risk of delayed or stolen funds.
Who Will Be Affected by the Change?
The change will impact a small group of beneficiaries who still receive paper checks. Currently, less than 1% of beneficiaries use paper checks for their payments. These individuals are being encouraged to switch to direct deposit or opt for a pre-paid card to continue receiving their benefits without interruption.
What You Should Do If You’re Still Receiving Paper Checks
If you are one of the few remaining beneficiaries still receiving a paper check, the SSA is sending out notices to explain the change. These notices will include instructions on how to switch to electronic payments. You will also find an insert in your next benefit check with the steps you can take.
There are two options for transitioning to electronic payments:
Enroll in direct deposit with your bank. Your benefits can be deposited directly into your checking or savings account. This is the most common and recommended method for receiving payments.
Opt for a Direct Express Card. If you don’t have a bank account, you can get a prepaid debit card designed specifically for federal benefit payments. The Direct Express Card functions like a debit card, allowing you to access your funds securely and quickly.
What Happens After September 30?
After September 30, 2025, beneficiaries who have not switched to direct deposit or a Direct Express Card will no longer receive paper checks. They will need to have an electronic payment method set up to continue receiving their benefits without delay. The SSA has made it clear that the transition to electronic payments will help ensure that people receive their payments promptly and securely.
The transition from paper checks to electronic payments by the SSA is a step toward modernizing the system and improving service delivery for beneficiaries. While only a small percentage of beneficiaries are affected, it’s essential for those still receiving paper checks to act now and switch to one of the available electronic payment methods. Whether through direct deposit or the Direct Express Card, this change will help improve the efficiency and security of payments, benefiting both recipients and the government.
