The End of Paper Checks: Social Security Goes Digital

Money Explainers

Heads up! Paper Social Security checks are going away. Learn about the upcoming September 2025 deadline and how to transition to electronic payments seamlessly. Don't get caught off guard! Is your Social Security payment going digital? Nearly half a million people will be affected by the shift from paper checks. Watch our video to prepare and ensure your benefits continue without interruption! #ElectronicPayments.  #RetirementSecurity.  #GovernmentUpdate.

Transcript

00:00A significant change is coming for nearly half a million Americans who still receive

00:04Social Security and SSI benefits by paper check. Get ready to transition to electronic

00:09payments, as a federal mandate is set to revolutionize how benefits are dispersed.

00:15An executive order, modernizing payments to and from America's bank account,

00:19signed in March by President Donald Trump, mandates that all federal payments must be

00:23made electronically after September 30, 2025. This includes Social Security, SSI, disability

00:30benefits, vendor payments, and even tax refunds. Currently, 493,775 payments, or 8.7% of all

00:40benefit disbursements, are still issued via physical check across the U.S. and its territories.

00:46This shift aims to combat large-scale mail theft and rising fraud, which surged during the COVID-19

00:52pandemic. The Treasury Department reports that paper checks are 16 times more likely to be lost,

00:58stolen, or altered compared to electronic funds transfers. The move to a fully digital system

01:04promises significant cost savings and efficiency gains. However, this transition presents logistical

01:11challenges, particularly for vulnerable recipients. Critics worry it could disproportionately affect

01:17seniors who lack digital access or confidence with online banking, especially given recent

01:22cuts to digital equity funding. Without expanded support programs and multilingual outreach,

01:28there's concern about beneficiaries missing payments and increased customer service issues.

01:33So, how can beneficiaries who still rely on paper checks prepare for this change?

01:38First, consider using my Social Security online. You can enroll for direct deposit and check your

01:45payment status there. It's vital to keep your personal information, including addresses and payment

01:50details up to date on SSA. Gov. Second, be highly aware of fraud. The SSA urges vigilance against fraudulent

01:59communications about payment changes. Remember, either the SSA nor the Treasury will ever ask you for payment

02:06to set up or expedite your benefits. Finally, if you face undue barriers to digital payments, you can report

02:13hardship. Contact the SSA or the Electronic Payment Solution Center to discuss alternatives or apply for an

02:20exemption. Special circumstances, like lack of banking access or emergencies, may allow for non-digital

02:27payments, but these are evaluated case by case. The SSA aims to complete this digital payment transition by

02:34September 30, 2025. Stay informed, update your information, and monitor official communications

02:41for further guidance. Money Explainers

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