Federal benefit recipients will soon be required to choose between Direct Deposit and the Direct Express debit card as traditional paper checks begin to phase out. A deadline set by the U.S. Department of the Treasury marks a major shift in how monthly payments for Social Security, Supplemental Security Income (SSI), and other federal programs are delivered.
According to reporting from MARCA, the change affects millions of Americans who currently rely on paper-based disbursements. Officials point to logistical and security concerns as key reasons behind the policy. More details on eligibility, enrollment, and exemptions are available through official federal channels.
Security and Efficiency: The Official Reasons Behind the Shift
The U.S. Treasury has formally stated that “security and efficiency are the primary drivers behind this transition” away from paper-based payments. The department cites a growing number of incidents involving check theft and mail fraud, with criminal schemes increasingly targeting mailed government payments.
Paper checks are vulnerable to theft, loss, and delivery delays. According to Treasury data, fraud attempts have escalated in recent years, prompting the push toward electronic alternatives that are safer and more traceable.
Delays and Disruptions Are Driving Concerns
Paper checks are also subject to postal delays, weather disruptions, holidays, and postal backlogs, all of which can disrupt the timely delivery of benefits. These risks disproportionately affect recipients who rely on consistent monthly income.
By contrast, electronic payments are deposited automatically and are available on time, regardless of external conditions. This provides recipients with stable, secure access to their funds, especially important for those living in rural areas, without bank accounts, or with limited mobility.
What Is Direct Deposit?
Direct Deposit is the preferred option for recipients with a bank or credit union account. It sends federal payments directly to a checking or savings account, where funds are available on payment day.
The method eliminates the risk of lost or stolen checks, provides immediate access to funds, and removes the need to pay check-cashing fees. In addition, all transactions are traceable, which simplifies dispute resolution if issues arise. Payments are deposited automatically and consistently on time, regardless of external factors such as weather or mail delays.
How to Enroll in Direct Deposit
There are several ways to enroll in Direct Deposit. Recipients can visit their local bank, credit union, or savings and loan institution to set up electronic payments. Enrollment is also available online through the official Go Direct portal at www.godirect.gov, or by calling 1-800-333-1795.
Additionally, individuals may contact the Social Security Administration by phone at 1-800-772-1213, or via TTY at 1-800-325-0778 for those with hearing impairments.
To complete the registration process, applicants must provide their Social Security number, the routing and account number of their financial institution, and information from a recent benefit check or claim.
What Is the Direct Express Debit Mastercard?
For recipients without a bank account, the Direct Express® Debit Mastercard® offers a secure, bankless alternative. Benefits are automatically loaded onto the card, which can be used to:
- Make purchases
- Pay bills
- Withdraw cash from ATMs
No credit check or bank account is required, and users receive the same timely, electronic delivery of benefits as with Direct Deposit.
How to Enroll in Direct Express
To sign up for a Direct Express card, individuals can call 1-877-874-6347 and provide their Social Security number, date of birth, and benefit claim details. The card is issued by Comerica Bank under a contract with the U.S. Department of the Treasury.
While the shift to electronic payments is mandatory for nearly all beneficiaries, the Treasury permits limited exemptions in extraordinary circumstances. To request an exemption, individuals can call the Treasury’s waiver line at 1-855-290-1545 or submit a waiver request form by mail. Only select individuals will qualify, based on specific hardship or legal criteria.
