MILLIONS of Americans risk disruption to their monthly benefits as Social Security prepares to scrap paper checks for good.
The agency has set September 30 as the final deadline before switching almost entirely to electronic payments.
Social Security will stop mailing paper checks after September 30 (stock)[/caption]
Social Security Administration insists electronic transfers are more secure than paper checks (stock)[/caption]
As of that date, Social Security will no longer send checks by mail to most of its nearly 70 million recipients, instead encouraging everyone to opt for direct deposit or prepaid debit cards.
Officials say the change is aimed at enhancing security and reducing costs after more than eight decades of using paper checks.
“We have been communicating directly with beneficiaries since July 1, and we have worked diligently to ensure that the less than one percent of individuals who receive paper checks have ample time to enroll,” a Social Security spokesperson told CBS News.
The move comes under an executive order signed by President Donald Trump in March, mandating federal agencies to phase out paper-based payments.
The Social Security Administration insists electronic transfers are more secure than paper checks, which it says are 16 times more likely to be lost or stolen.
Checks also cost the government more to process – about 50 cents each, compared with 15 cents for electronic payments.
Beneficiaries who still receive paper checks are being urged to switch immediately to avoid delays in their October benefits.
Direct deposit can be set up through a personal “my Social Security” account.
The agency has confirmed that Social Security technicians are on hand to assist with the transition and answer questions from the public.
Notices have also been sent to households still receiving paper checks to alert them of the looming change.
Temporary checks for new claims have already been discontinued, and anyone seeking an exemption must file a waiver with the US Treasury.
Officials stressed that in rare cases, paper checks will still be available for people with no other way to receive payments.
“The US Department of the Treasury will grant exceptions to the rule for qualifying circumstances,” the agency spokesperson said.
Advocates for seniors have warned that many of the 600,000 people who still rely on checks are “unbanked,” meaning they do not have access to traditional bank accounts.
Filing a waiver with the SSA
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
- The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
- “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
- It also lists multiple repayment options.
- Recipients with additional questions are urged to call 1-800-772-1213.
According to Bankrate, 4.6 percent of Americans are unbanked, often relying instead on check-cashing services to manage their finances.
Senator Elizabeth Warren and others have raised concerns that these vulnerable groups could be left behind.
Still, the Social Security Administration is pushing forward, saying electronic payments ensure monthly benefits are delivered “promptly, securely, and without delay.”
President Franklin D. Roosevelt signed the Social Security Act into law in 1935.
The first Social Security check was issued in 1940 to a retired Vermont teacher named Ida M. Fuller, who received $22.54.
The IRS has told taxpayers and Social Security recipients to keep using current forms and procedures until updated versions are released, with new guidance for the 2026 tax season expected later.
Most refunds will also move to digital payments, arriving in under 21 days, while paper check refunds could take six weeks or more.
