AMERICANS are due to receive security payments of up to $5,108 within days.
However, a new rule could mean thousands face delays in receiving their money.
People may face delays in receiving their social security payments[/caption]
The potential delays are thanks to a new law phasing out paper checks[/caption]
Social Security payments are due on October 8 and October 15, depending on where the recipient’s birthday falls in the month.
However, these dates could be delayed.
As of September 30, paper checks have been phased out as a payment method.
Anyone who had checks as their default method, and failed to set up an alternative in time, could face waiting around for their money.
Americans were urged to provide a bank account for direct deposit, or to enroll in a pre-paid debit card program, in order to access benefits without any pauses or delays.
Experts mostly recommend direct deposits, as this can safely and securely link a checking or savings account or debit card.
With the Direct Express Prepaid Debit Card option, a credit check isn’t required, and the card can be used like a standard debit card.
The SSA will deposit cash onto it every month.
Only less than one percent of all recipients still got the physical checks, but that’s still about 400,000 people.
The Trump administration announced the decision to move away from paper checks in an executive order on March 25.
It was taken in order to reduce costs, delays, fraud risk, lost money, and theft.
According to data from the government, the paper checks are at least 16 times more likely to be reported stolen or lost.
They’re also more likely to be altered or returned deliverable than electronic payments, per First Citizens Wealth.
US Treasury estimates showed that the paper check discontinuation could save the government about $750 million yearly as well.
Anyone who did not set up an alternative to paper checks could face delays[/caption]
ADVANCE NOTICE
The SSA has been working to make sure there would be no disruptions since this summer, however.
“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 spokesperson for the federal agency told CBS News.
Several notices were also sent to affected households.
Social Security technicians are also still on hand to assist with the transition and answer any questions.
What are the Social Security payment changes?
Paper checks for Social Security payments have disappeared
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 phased 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 had until Sept. 30 to set up an online bank account or some form of digital payment option.
