Social Security Paper Checks Are Being Phased Out: How To Get Paid Now
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The Trump administration will soon suspend paper Social Security checks in a move toward modernizing federal payments. As of July, the decision affects 521,644 households, or 0.75% of all Social Security beneficiaries.
If you’re affected by the change, you have some options for receiving your benefits, including direct deposit or a prepaid debit card.
The Timeline
The Social Security Administration (SSA) announced in a blog post last month that it will phase out paper checks for benefits starting September 30, 2025.
The SSA encouraged check recipients to enroll in direct deposit or sign up for the Direct Express® card to continue receiving their payments on time. Meanwhile, the administration will send notices to explain the change and highlight the benefits and ease of the switch to electronic payments.
The Benefits
The U.S. Department of the Treasury announced in late May the switch to e-payments to distribute all federal funds, including Social Security benefits, tax refunds and vendor payments.
“Paper checks are increasingly the front door for fraud. Treasury is committed to raising awareness of the growing fraud risks associated with paper checks and providing Americans with the knowledge and tools to fight financial fraud and make informed financial decisions,” the Treasury said in a statement.
Alongside security measures, electronic payments will also save recipients time because electronic funds transfers (EFTs) are processed faster than checks. They will also reduce costs for the government: A paper check costs about 50 cents to issue, whereas an EFT costs less than 15 cents.
The Switch
Enrollees who currently receive paper checks can pick one of two options to receive their Social Security payments electronically:
- Direct deposit: Beneficiaries can sign up for direct deposit with their financial institution. Payments can be deposited directly into their checking or savings account.
- Direct Express® Card: The Direct Express card is a prepaid debit card specifically for federal benefit payments for people without a bank account.
Make the Most of Direct Deposit
Choosing the right bank account provides a litany of benefits, including early direct deposit to access your payments faster. Some accounts come with access to thousands of ATMs and have helpful apps.
When picking a checking account, opt for one with minimal or no monthly maintenance fees, overdraft fees, or out-of-network ATM fees. The best accounts typically offer FDIC insurance of $250,000 per depositor, per account ownership type, and per financial institution.
The NBKC Bank Everything Account is our top pick, with $0 monthly maintenance fee, $0 minimum balance requirement to earn interest on the account, a two-day early direct deposit option, and a $12 a month reimbursement on out-of-network ATM fees. The account earns 1.75% APY,, with interest compounded daily and credited monthly.
Read More: The Best Checking Accounts Of 2025