A MAJOR change for Social Security recipients is coming at the end of September, and they must take action fast.
The federal agency confirmed the adjustment earlier this year, and it could mean delayed payments for some.
In an effort to crack down on scams and fraud and decrease costs, the Social Security Administration (SSA) is eliminating paper checks.
According to government data, paper checks are 16 times more likely to be reported stolen or lost by Americans.
They’re also more likely to be returned deliverable or altered, as per First Citizens Wealth.
The Trump administration made the decision to get rid of the paper checks final through an executive order on March 25.
Through the order, starting on September 30, 2025, any federal disbursements, like tax refunds and Social Security payments, will be strictly electronic.
Any and all Americans who get retirement benefits, Supplemental Security Income (SSI), or Social Security Disability Insurance (SSDI) will have to abide by the change.
Paper checks are still going out for the time being, but recipients must sign up for direct deposit or another electronic payment method by the date or risk having their benefits delayed until they do.
There are options available of providing a bank account for direct deposit or enrolling in an approved pre-paid debit card program to access benefits without a bank account.
SIGN UP NOW
With the Direct Express Prepaid Debit Card option, no credit check is required, and the card can be used like a standard debit card with cash deposited onto it from the SSA every month.
Direct deposit can be easily set up with the SSA and recipients’ banks through their checking or savings account, debit card, or even a fintech account like Purple.
They only need to log onto their account on the SSA website, and select “Direct Deposit” before following instructions.
Assistance can also be obtained over the phone at 1-800-772-1213 or by heading in-person to a Social Security office
To register for either, Americans can also head to Go Direct, a government website that helps with the process.
For those who desire it, it’s even possible to download and complete a paper from from the Go Direct website.
What are the Social Security payment changes?
Paper checks will eventually disappear
Donald Trump on March 25 signed an executive order declaring that all federal departments and agencies must end their use of paper checks and switch to electronic payments by September 30 2025.
The U.S. Treasury now has less than four months to phase out the paper checks it uses for the likes of tax refunds and the roughly 456,000 Social Security checks that are mailed monthly.
The executive order will “modernize how the government handles money, switching from old-fashioned paper-based payments to fast, secure electronic payments,” the administration said.
The White House said, “Paper-based payments, such as checks and money orders, impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies.”
Under the order, all government departments and agencies will have to issue disbursements via electronic transfer methods, like direct deposit, debit or credit card payments, digital wallets and real-time transfers.
Consumers will have until Sept. 30 to set up an online bank account or some form of digital payment option.
Source: NBC News
The Treasury Electronic Payment Solution Contact Center can be reached by phone for setting up the details at 1-877-874-6347 as well.
SOME EXCEPTIONS
Again, not taking action by September 30 could delay funds, but there are some exceptions for recipients with no access to banking or electronic payment tools, or those experiencing extreme financial hardship.
These exceptions must still be approved by the US Treasury.
As it stands, about 68 million Americans get their SSA benefits through direct deposit, per Yahoo News.
The direct deposit rule is among several adjustments the SSA has been making in 2025.
CHANGES CONTINUE
It notably sent out backpay to about 3.1 million Americans after the repeal of the controversial Government Pension Offset (GPO) and Windfall Elimination Provision (WEP) policies.
About 7,000 staff, or about 13% of the SSA’s workforce, were also cut this spring, per data from the Center on Budget and Policy Priorities.
The SSA also sparked controversy through an update to its overpayment policies.
An overpayment means the federal agency paid a recipient more money than they should’ve gotten in benefits.
Reasonings for this vary, including a recipient failing to update annual income or an employment change or an error on the SSA’s end.
Before this spring, the SSA would only withhold 10% of monthly benefits for a recipient who was overpaid to pay the money back.
In March, it was determined to be 100% of future payments instead, according to a news release.
This was later changed to 50% in April after backlash.
Estimates from the Office of the Chief Actuary estimate the adjustment will recoup about $7 billion in overpayments over the next decade.
The SSA needs the money, as it’s currently expected to run out of funds for some recipients in the coming years.
Two senators have a plan to stop that from happening.
