Social Security Administration Tells Beneficiaries To Make The Switch Now From Paper Checks

The federal government must stop issuing paper checks by September 30 in favor of direct deposit, prepaid cards, or other digital payment options—that’s according to an Executive Order signed by President Donald Trump in March of this year. Now, the Social Security Administration has provided additional guidance for Social Security beneficiaries.

Who Still Gets Paper Checks?

According to the agency, the transition primarily affects a small group of beneficiaries who have not yet switched over to electronic payments. The Social Security Administration said in its most recent communication that less than one percent of beneficiaries currently receive paper checks.

Last year, 512,690 Americans—about 0.8% of the more than 68 million total recipients—drew Social Security benefits checks. Approximately 67,826,776 Americans receive benefits by Direct Deposit.

(The number of paper checks issued by the IRS is less robust. The most recent filing data from the tax agency indicates that most tax refunds for individual federal income tax returns are issued by direct deposit. To date in 2025, 86,937,000 of the 93,569,000 taxpayer refunds were issued by direct deposit—just under 93%.)

Why Move To Electronic Payments?

According to the order, using paper checks and money orders results in costs, delays, risks of fraud, lost payments, theft, and inefficiencies. It highlights that, historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered compared to an electronic funds transfer (EFT).

(Earlier this year, the federal government alleged that four postal workers in Philadelphia stole thousands of envelopes containing U.S. Treasury checks from mail sorting machines to sell on the internet. A few months before that, a former U.S. Postal Service employee was found guilty of stealing nearly 100 checks, including tax refund checks, totaling over $1.6 million.)

Waste is also a concern: The order says that maintaining the physical infrastructure and specialized technology for digitizing paper records costs the American taxpayer over $657 million in Fiscal Year 2024 alone.

When it comes to Social Security benefits, the agency says that Electronic Funds Transfers (EFTs) are processed more quickly than paper checks, helping beneficiaries receive their payments on time without delays. It’s also cheaper: According to the U.S. Department of the Treasury, issuing a paper check costs about 50 cents, whereas an EFT costs less than 15 cents.

How Can Beneficiaries Switch Over?

The Social Security Administration is currently sending notices to people who still receive paper checks to explain the upcoming change and highlight the benefits of switching to electronic payments. All benefit checks will also include an insert detailing the steps beneficiaries can take to switch to electronic payments, with Social Security Administration staff ready to assist.

Payment Options

Beneficiaries who currently receive paper checks can opt to receive their Social Security payments electronically via Direct Deposit or a Direct Express Card.

With Direct Deposit, payments can be deposited directly into a checking or savings account. Beneficiaries can enroll with their banks or financial institutions. If you already receive Social Security or SSI benefits and you have a bank account, you can also sign up for direct deposit by starting or changing direct deposit online or calling Social Security (1.800.772.1213 or TTY 1.800.325.0778), or visiting your local Social Security Field Office.

The Direct Express Card is a prepaid debit card designed specifically for federal benefit payments—this is an option for those who do not have a bank account (the unbanked). To get Direct Express, call the U.S. Treasury Electronic Payment Solution Center at 1.877.874.6347 to enroll! You will need your Social Security number, information from your most recent federal benefit check or claim number, and your date of birth.

Unbanked Individuals

Who qualifies as unbanked? According to the Federal Deposit Insurance Corporation (FDIC), a household is considered unbanked if no one in the household has a checking or savings account at a bank or credit union. In 2023, 4.2% of U.S. households—about 5.6 million households— were unbanked.

Unbanked rates are higher for certain populations, including those who are likely to receive benefits, such as lower-income households. Rates are also higher for minority populations, including Black, Hispanic, and American Indian or Alaska Native households, and working-age households with a disability. For working-age households with a disability, the unbanked rate in 2023 was 11.2%—that's three times higher than the unbanked rate among working-age households without a disability. For single-parent households, the unbanked rate was 12.3%—more than five times higher than the unbanked rate among married-couple households with one or more children. And while mobile banking is on the rise, meeting with a real person—bank tellers—remains the most prevalent primary method of account access for households aged 65 or older.

Seniors and disabled persons likely make up the lion’s share of the nearly half a million Americans still receiving paper Social Security checks. Before the order, the Social Security Administration had already been trying to move beneficiaries to electronic services, noting that they would receive their payments much faster.

Exceptions Apply

Some exceptions apply, including for individuals who do not have access to banking services or electronic payment systems, as well as certain emergency payments where electronic disbursement would cause undue hardship. For more information or to request a waiver, call Treasury at 855.290.1545. You may also print and complete a waiver form, then return it to the address indicated on the form.

Payments Need To Be Electronic, Too

The order doesn’t just apply to disbursements. It also applies to receipts—meaning payments that Americans make to the federal government, such as tax payments. Agencies, including the Treasury, Health and Human Services, the Department of Education, and Veterans Affairs, have been directed to “expedite requirements” to receive the payment of federal receipts, including fees, fines, loans, and taxes.

The IRS Is Switching Over, Too

The IRS has also been encouraging taxpayers to use direct deposit. The agency claims it is the quickest and most efficient way to receive your tax refund. If you don’t have a bank account but possess a prepaid debit card, you might be able to have your refund deposited onto that card. Additionally, some payment apps like CashApp allow for the direct deposit of refund checks. Be sure to check with your platform or financial institution to determine if this option is available, and also to determine the routing number and account number, which may be different from the card number.

Despite the push, one group of taxpayers may be out of luck: American taxpayers living abroad. If you live outside the country, your federal income tax refund can only be deposited directly into a U.S. bank account or an affiliated account.

SSA has similar—though a bit more generous—rules for beneficiaries living abroad. You can only direct deposit Social Security payments into a U.S. financial institution or a financial institution in a country with an international direct deposit agreement (a list of these countries can be found here).