Starting September 30, the social security administration (SSA) will end routine paper check disbursements for benefits, completing a nationwide transition to fully electronic payments. This change is part of a federal modernization effort outlined in executive order 14247, issued by President donald trump in March 2025, requiring all federal payments to be delivered electronically by that date.
According to Newsweek, fewer than one percent of Social Security beneficiaries still receive paper checks, and the SSA has begun contacting them directly to assist with the transition to direct deposit or prepaid debit cards. The policy was first announced in May 2025 and confirmed in mid-July.
Timeline and Implementation
The policy was first announced in may 2025 and confirmed by the SSA in mid-july 2025. Beneficiaries still receiving paper checks will need to choose between direct deposit or a direct express prepaid debit card. Paper checks cost around $0.50 per transaction to issue compared with less than $0.15 for electronic transactions, according to SSA estimates.
Michael Ryan, a finance expert and the founder of michaelryanmoney.com, told newsweek:
“I’ve seen too many clients over the years get hit by check washing scams. Criminals literally erase the payee and amount on stolen checks. It’s heartbreaking when someone’s entire monthly income disappears because their check got intercepted.”
A spokesperson for the SSA told newsweek:
“In March 2025, President Trump issued Executive Order 14247, which mandates the transition to electronic payments for all Federal disbursements by September 30, 2025. Less than one percent of Social Security Administration beneficiaries currently receive paper checks. SSA is proactively contacting those beneficiaries to alert them about the change and the process to enroll in direct deposit or receive Direct Express cards.”
Exceptions for Certain Recipients
On july 23, 2025, SSA Commissioner frank bisignano confirmed that exceptions will remain for individuals unable to use electronic payments. These may include those aged 90 or older, those with mental impairments, or residents of areas without banking access. Paper checks will continue in such rare cases, with detailed instructions provided to eligible beneficiaries.
Debt Recovery and Overpayments
The electronic transition coincides with a controversial debt recovery change. In july 2025, the SSA increased monthly withholding for beneficiaries with overpayment debts from 10 percent to 50 percent, targeting $32.8 billion in overpayments accumulated between 2020 and 2023. While the rate is lower than the 100 percent withholding initially proposed, critics say it may still harm low-income retirees and people with disabilities who rely almost entirely on their benefits.
Modernization of Service Access
To support the shift, the SSA has expanded its my social security online portal to offer 24/7 access, enabling users to update direct deposit details, request benefit verifications, and submit required documentation. Officials say this will help beneficiaries manage their accounts and navigate payment changes more efficiently.
Expert Perspectives
Alex Beene, a financial literacy instructor for the university of tennessee at martin, told newsweek:
“The pivot away from paper checks is one that some in the administration feel is needed. Paper checks can be viewed as easier targets for fraud, especially when it comes to government benefits. There’s also the reality that the vast majority of recipients have opted to receive their monthly benefits through direct deposit, cutting down the need for the administrative oversight for paper checks and all the extra postage and processing that come with them.”
Kevin Thompson, CEO of 9i capital group and host of the 9innings podcast, told newsweek:
The SSA aims to achieve two main objectives with this change: modernizing their payment system and reducing fraud within the program. They have identified paper checks as a significant source of fraud, although I personally find that reasoning questionable. Cashing paper checks typically requires photo identification and verification, so digital banking—where most financial fraud occurs—seems like a more logical area of concern.
Drew Powers, founder of powers financial group in Illinois, told newsweek :
“Moving to direct deposit and other forms of electronic payment really is more secure than a paper check. For many senior citizens, their mailbox is a prime entry point for theft and fraud. Hopefully, this transition can move at a pace that makes it more comfortable for the recipient. Some seniors will have to learn new online systems, and must be diligent in safeguarding their information.”
