Starting next week on Tuesday, September 30, the Social Security Administration (SSA) will no longer issue paper checks for benefit payments, and instead move exclusively to electronic payments: either direct deposit or a prepaid debit card.
The change is part of a broader government-wide initiative to modernize its services and improve efficiency and security, in order to ensure that some 70 million Americans receive their monthly benefits promptly.
However, this could mean trouble for some older Americans who do not know how to set up direct deposit or will have trouble using a prepaid debit card.
In March, President Trump issued Executive Order 14247, which mandates the transition to electronic payments for all federal disbursements by September 30.
“Less than 1 percent of Social Security Administration beneficiaries currently receive paper checks,” a Social Security spokesperson told Fast Company in an email on Friday. “SSA is proactively contacting those beneficiaries to alert them about the change and the process to enroll in direct deposit or receive Direct Express cards.”
In cases where a beneficiary has no other means to receive payment, the SSA said it will continue to issue paper checks.
According to the Treasury Department, this shift could save the federal government millions of dollars each year. Issuing a paper check costs about 50 cents, while an electronic payment (or EFT) costs less than 15 cents.
Electronic payments are also more secure. Paper checks are 16 times more likely to be lost or stolen, compared with electronic payments, thus increasing the risk of fraud, according to the agency.
How do I sign up for Social Security direct deposit or a prepaid debit card?
For more details, and to learn how to enroll in direct deposit or obtain a Direct Express prepaid debit card, visit ssa.gov/deposit.
To enroll in direct deposit, go online to your personal “my Social Security account” (or create an account, if you don’t already have one) on the Social Security Administration’s website.
Enrollment in direct deposit and Direct Express Debit Mastercard is also available through the Treasury’s Go Direct website, or via phone at 1-877-874-6347.
For additional questions, call the Social Security Administration at 1-800-772-1213.