Big Shake-Up in Social Security This Month — Millions May Face Payment Rule Shift

The government is making a big change. From September 30, people who get Social Security benefits will no longer get paper checks. This decision comes from a new rule called “Modernizing Payments To and From America’s Bank Account,” announced on March 25 by the White House.

This change is part of a plan to make payments faster and safer. Using electronic banking is quicker than waiting for a check in the mail. It also makes it easier for people to get their money on time.

Why Is This Change Happening?

Electronic payments are faster and more secure. Paper checks can get lost, stolen, or delayed. With direct deposit, money goes straight to your bank or card.

According to the Social Security Administration (SSA), less than one percent of people still get paper checks. Most people already use direct deposit for their benefits.

Modernizing Federal Payments

In August, Treasury Secretary Scott Bessent said this change will help prevent fraud and theft. It will also speed up payments for millions of Americans.

The Social Security program serves around 74 million people. About 99% already use direct deposit. But thousands still get paper checks, and they must change their payment method or request an exception before September 30.

The government also says this change will save money. Sending a paper check costs about 50 cents, but an electronic payment costs less than 15 cents. This could save millions of dollars each year.

What Options Do Beneficiaries Have?

If you still get a paper check, you have two choices for electronic payments. You can use direct deposit or get a Direct Express Card. The Direct Express Card is for people who do not have a bank account.

Here are your options:

• Call Social Security at 1-800-772-1213.
• Update your payment online at www.ssa.gov.
• Ask your bank or credit union to set up direct deposit.
• Enroll in Direct Express by calling 1-800-333-1795.

What If You Cannot Switch?

Some people cannot use electronic payments because they do not have the needed resources. If you are in this group, you can ask for an exception. The SSA has said it will continue sending paper checks to people who truly need them.

What Should You Do Now?

If you get paper checks, act before September 30. Switch to direct deposit or Direct Express if you can. This will make sure you get your benefits on time.

If you cannot make the switch, contact the SSA and ask for an exception.

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