The Social Security Administration (SSA) continues to advance a nationwide transition to electronic benefit payments and move towards eliminating paper checks for recipients of retirement, disability, and Supplemental Security Income benefits. The move follows a federal modernization mandate aimed at improving efficiency and reducing fraud.
Under the policy, beneficiaries who are still receiving paper checks must enroll in direct deposit or the government's prepaid debit card option, Direct Express.
“If you’re still receiving payments by paper check, we encourage you to switch to electronic payments as soon as possible. Paper checks are 16 times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments. Switching now ensures you receive your Social Security or Supplemental Security Income quickly and securely,” states the SSA.
SSA said beneficiaries with qualifying hardships, including some people with mental health challenges or limited access to financial institutions in remote areas, may request an exception through the U.S. Treasury.
The change is driven by cost savings, efficiency, and security concerns, according to the administration.
The Department of the Treasury reports that issuing paper checks costs about $3.07 each, compared to about 15 cents for electronic payments, according to the SSA.
The shift follows Executive Order 14247, "Modernizing Payments to and From America’s Bank Account," signed in March 2025.
The order directed federal agencies to phase out paper-based payment systems and transition to electronic funds transfers for programs including Social Security and tax refunds.
Beneficiaries receiving paper checks can transition to electronic payments by updating direct deposit information through a "my Social Security" account or through their financial institution.
Beneficiaries without bank accounts can enroll in Direct Express, a prepaid debit card program managed by the U.S. Treasury that allows monthly benefit deposits.
“Electronic funds transfers (EFTs) are processed faster, ensuring you receive your payments on time every month,” says the SSA.
Instead of waiting for a paper check to arrive by mail, recipients have access to their funds on the morning of the scheduled payment date.
The Treasury Department also says electronic transfers can help reduce delays associated with mail delivery while providing a secure method for receiving federal benefits.