Social Security to Stop Sending Paper Checks This Month
The Social Security Administration will stop mailing paper checks to beneficiaries starting Sept. 30.
The change stems from an executive order signed by President Donald Trump on March 25 requiring all federal payments — including Social Security benefits, tax refunds and intragovernmental payments — to be made electronically. The order cited paper checks as costly, inefficient and vulnerable to fraud, theft and lost payments. Shifting to direct payments, the order said, would improve efficiency, cut expenses and strengthen the security of federal payments.
About 400,000 Social Security recipients — less than 1% of the nearly 69 million beneficiaries — still receive paper checks, according to the SSA’s latest data. While most federal payments are already issued electronically, the majority of Social Security recipients are older Americans, who are more likely to rely on traditional paper payments than electronic options.
Exceptions will be made. In a July 23 press release, U.S. Senator Elizabeth Warren, D-Mass., said SSA Commissioner Frank Bisignano committed to ensuring that beneficiaries who need paper checks will continue to have access to them. “Their plan is to start with people who do have checking accounts, but he made a commitment that no one will be left behind,” Warren said.
Although the Social Security Administration, or SSA, hasn’t issued a formal public statement, a spokesperson told Money.com in an email on Aug. 4 that the agency is “proactively contacting" the beneficiaries who still receive paper checks to alert them about the change and the process to enroll in direct deposit or receive a Direct Express card — a prepaid debit card that allows beneficiaries to access their federal benefits without a bank account.
According to the Treasury Department, exceptions will be made only in three circumstances: if a beneficiary has a mental impairment that makes it challenging to manage electronic payments, lives in a remote area without the infrastructure to support electronic banking or is age 90 or older. Everyone else must transition to electronic payments.
Options for paper check recipients
Recipients who believe they qualify for a waiver can request an application through the U.S. Treasury Electronic Payment Solution waiver line at 1-855-290-1545. Beneficiaries can also print and fill out the online waiver form and return it to the address listed in the bottom left-hand corner.
On the flip side, recipients who currently receive Social Security benefits or Supplemental Security Income by paper check can sign up for electronic payments online through the Treasury's GoDirect website. They can also enroll by mailing a direct deposit form or calling 1-877-874-6347.
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