Social Security Phasing Out Paper Checks

The Social Security Administration will soon impose new limits on the way that beneficiaries, including those with disabilities, can be paid.

The agency is working to put an end to paper checks for Social Security and Supplemental Security Income benefits by the end of this month.

Fewer than 1% of beneficiaries currently receive a check and the Social Security Administration is urging as many of them as possible to start receiving their payments by direct deposit or via a special debit card known as Direct Express.

“To prevent any disruption in payments, we are reaching out to beneficiaries who currently receive paper checks and encouraging them to switch to electronic payment options before the deadline,” Nick Perrine, the agency’s chief communications officer, wrote in a “Dear Colleague” letter this month. “Electronic payments offer significant advantages over paper checks, including faster access to funds, increased security, and greater convenience.”

As part of the change, the Social Security Administration said it will no longer offer a temporary check option when processing initial claims.

The government previously attempted to put an end to paper Social Security checks in 2013. The current effort was spurred by an executive order President Donald Trump issued in March mandating that all federal disbursements be electronic by Sept. 30.

Paper checks cost about 50 cents apiece to issue versus 15 cents for an electronic funds transfer, meaning that the switch could save the government millions each year. In addition, the Social Security Administration said that paper checks are 16 times more likely to be lost or stolen.

However, even with the new push toward electronic payments, there may be some exceptions.

“Where a beneficiary has no other means to receive payment, we will continue to issue paper checks,” a Social Security Administration spokesperson said in a statement.