Goodbye Checks_ The Digital Shift for Your Benefit

Money Explainers

Your paper checks are going digital. Here's what you need to know about the upcoming shift. Learn about the new electronic payment mandate for federal benefits and how it might affect you. Stay informed about the federal government's move to all-electronic payments by September 2025.  #SocialSecurityChanges.  #DigitalPayments. #BenefitUpdates.

Transcript

00:00The familiar paper Social Security check, a staple for millions, is disappearing.

00:05By September 30, 2025, all federal benefit payments, including Social Security and

00:11Supplemental Security income, will be fully electronic. This move, mandated by a March

00:16executive order from President Trump, aims to save the government over $657 million annually,

00:22the cost of maintaining the physical infrastructure for paper checks.

00:25Nearly 500,000 beneficiaries still receive paper checks, a group disproportionately composed

00:31of those over 80, individuals in rural areas without internet access, and people with disabilities.

00:38Experts like Teresa Gallarducci, an economist at the New School for Social Research,

00:43voice concerns about potential delays and anxiety for those who rely heavily on these payments.

00:48Mary Johnson, a Social Security analyst, highlights the significant impact on unbanked households,

00:534.2% of all U.S. households in 2023, who may lack the trust, funds, or privacy needed for

01:00traditional bank accounts. While the Social Security Administration urges beneficiaries to

01:06update direct deposit information online, by phone, or at local offices, many, especially the elderly,

01:12struggle with digital literacy and access. The agency suggests prepaid debit cards through the

01:18Direct Express program as an alternative for those without bank accounts. In rare cases,

01:23the Treasury Department may grant waivers to the electronic payment mandate.

01:28Critics like Nancy Altman of Social Security Works argue this policy lacks sensitivity towards

01:32vulnerable populations, forcing them into a system they may not be equipped to navigate.

01:38The White House, however, defends the decision, citing a surge in mail theft and fraud involving

01:43paper checks during the COVID-19 pandemic, noting paper checks are 16 times more likely to be lost or

01:49stolen than electronic transfers. Money explainers.

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