The Social Security Administration released an emergency advisory regarding a massive change this fall for payments of federal benefits. As of September 30, 2025, the SSA will officially cease sending paper checks for all benefit payments, a milestone change that will impact millions of individuals nationwide.
This shift is the culmination of an extensive federal effort to modernize government payment systems and root out paper-based transactions. The shift is a product of President Trump’s Executive Order 14247, issued on March 25, 2025, entitled “Modernizing Payments To and From America’s Bank Account,” which mandates full replacement of paper checks for all federal payments.
The extent of the change and who will be affected
Although the overwhelming majority of Social Security beneficiaries already receive their payments electronically, it is estimated that 494,000 to 512,690 Americans still get monthly paper checks. That is fewer than 1% of the greater than 68 million total Social Security beneficiaries across the country. To those impacted individuals, this is a significant thing about how they receive their important monthly payments.
Among the categories of individuals still issued paper checks are mainly seniors, especially those in their 80s, individuals residing in rural areas with sparse internet access, and the intellectually or physically impaired. Certain recipients have been receiving the conventional paper check method for many decades and might have particular issues adapting to electronic benefit systems.
Types of benefits affected
The electronic payment mandate applies to all benefit programs administered by the Social Security Administration, including:
- Social Security retirement benefits
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
- Survivor benefits
All other federal benefit payments are processed under the Treasury Department
The forces driving this shift
The federal government has chosen that significant cost savings is a motive for such a switch. Based on Treasury Department statistics, it costs approximately 50 cents to mail a paper check, but it costs less than 15 cents to process an electronic funds transfer. The government paid more than $657 million in maintenance of the physical infrastructure and special technology needed to process paper checks alone in fiscal year 2024.
This transition is also forecast to cost the federal government millions of dollars a year. Earlier projections were that mandatory electronic payments of benefits could save Social Security $1 billion over a period of 10 years. The cost difference is even higher looking at the fact that the government sends out millions of benefit payments every month.
Increased security and protection against fraud
Security issues have been significant factors in this move. Paper checks are much easier targets for theft and alteration compared to electronic payments. Federal reports have found Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than electronic fund transfers.
There has been a tremendous surge in reports of mail theft during the COVID-19 pandemic, further validating the need for a shift to more secure payment modes. Electronic payments ensure better tracking and minimize the risk of benefits being intercepted or altered fraudulently during transit.
Operational improvements
Electronic payments have many operational advantages over paper checks:
- Speed: Electronic payment is quicker than paper check payment, enabling payees to be paid on the due date without postal delays
- Reliability: No chance of checks getting misplaced or hindered because of climatic conditions
- Convenience: Money is credited instantly on the date of payment without trips to a bank or check-cashing centers
- Tracking: Payees and recipients can easily track when payments are received and made
Available electronic payment options: Direct Deposit
The most prevalent and used electronic payment method is direct deposit. Social Security benefits are automatically sent into the recipient’s own bank account every month by direct deposit. Direct deposit offers:
- Direct access to funds on the date of payment
- Seamless integration with existing banking relationships
- No extra charge for regular service
- Convenient online account management on bank websites
Beneficiaries can enroll in direct deposit at their local Social Security office, by calling 1-800-772-1213, or by enrolling online through their “my Social Security” account.
Direct Express debit card
For those not having bank accounts, the Direct Express® Debit Mastercard® is another electronic payment option. The prepaid debit card possesses the following features:
- No credit check necessary for approval
- No minimum balance requirements
- FDIC insurance coverage up to legal limits
- Can use to make purchases at locations that Debit Mastercard is accepted
- ATM and participating retailer cash withdrawal ability
Online bill payment features
The Direct Express card has proven particularly helpful for unbanked populations. According to Treasury data, more than 3.6 million payment recipients have enrolled in the Direct Express program, and about two of every three of those customers lack traditional bank accounts. In a 2012 survey, 95% of Social Security beneficiaries using Direct Express cards reported being satisfied with the service.
To enroll in the Direct Express program, beneficiaries can call the toll-free number at 1-800-333-1795 or visit godirect.gov.
