Social Security checks are disappearing: Here’s the big change coming this September

It’s been more than a decade since the Social Security Administration began requiring all new and existing beneficiaries to switch from paper check payments to direct deposit. However, the agency reversed its plan to eliminate paper check payments, that is, until now.

President Donald Trump signed an executive order in March setting a deadline to stop Social Security payments, and all other federal payments, being sent via a physical check. After 30 September, 2025, all SSA payments will be made via direct deposit to a beneficiary’s bank account, or to a Direct Express debit card if a beneficiary does not have a bank account.

How many Americans will be affected by change to Social Security payments?

Since 1 March, 2013, all new Social Security beneficiaries have required to receive their payments via direct deposit. Existing recipients were encouraged to make the switch but the SSA decided not to completely do away with paper checks as intended at the time.

Currently, about 0.8% of beneficiaries, over 500,000, still receive their Social Security payments via paper checks according to The Motley Fool. They have until the end of this month to either provide Social Security with a bank account number or sign up for a Direct Express debit card, so that the SSA can deposit the funds electronically.

Why is Social Security getting rid of paper checks?

Trump’s executive order, ‘Modernizing Payments To and From America’s Bank Account’, requires that all federal payments be made via direct deposit. This not only makes financial sense but also makes transactions safer.

The Motley Fool points out that each paper check costs the federal government 50 cents while an electronic fund transfer costs less than 15 cents. The change will save the US government over $2 million a year.

Furthermore, beneficiaries will receive their funds faster and there is far less chance of them being stolen or lost. “Paper check are 16 times more likely to be lost or stolen than electronic payments,” states The Motley Fool citing the SSA.

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