The federal government is set to phase out paper checks for all federal benefit programs, including Social Security and Supplemental Security Income (SSI), starting October 2025. This move aims to cut costs, reduce fraud, and speed up payments, but it’s causing concern for the half a million Americans who still rely on physical checks.
The New Digital Payment Mandate
As of October 1, 2025, paper checks will no longer be an option for Social Security or SSI recipients. Payments will be made exclusively through direct deposit, prepaid debit cards, or other digital payment methods. If you miss the deadline, your payment could be delayed.
This change follows an executive order signed by President Donald Trump on March 25, 2025, titled Modernizing Payments To and From America’s Bank Account.
The order mandates that all federal payments, including Social Security, tax refunds, and other programs, be delivered electronically by September 30, 2025. Paper checks will no longer be issued after this date, with very few exceptions allowed, such as for certain waivers.
Why the Change is Happening
The shift away from paper checks is driven by three key factors:
Cost Reduction: The U.S. government spends approximately $650 million annually to print and mail checks. Moving to electronic transfers is far cheaper, costing only pennies per transaction. Over the next decade, the government expects to save $1 billion—funds they claim could be used for other important programs.
Enhanced Security: Lost or stolen checks pose a significant risk for fraud. With direct deposit, the risk of interception is significantly reduced, as there’s no physical check to steal or alter.
Faster Delivery: Digital payments arrive almost immediately, eliminating issues like postal delays, lost mail, and long wait times for checks to clear. For the 67 million Americans who rely on these funds, getting timely access is crucial.
Who Will Be Affected?
The change will mostly impact seniors and rural residents, particularly those who live in areas with limited internet access or few banks. Currently, about 480,000 people, or 7% of Social Security recipients, still rely on paper checks.
The Social Security Administration (SSA) reports that 99% of beneficiaries already use electronic payments, so this move targets the last holdouts.
How to Switch to Digital Payments Before the Deadline
If you’re one of the remaining individuals who still receive paper checks, here’s how you can make the switch before the September 30, 2025 deadline:
Direct Deposit: This is the easiest option if you have a bank account. Simply provide your bank details to the SSA.
Direct Express Debit Card: If you don’t have a bank account, the Direct Express card is a great alternative. It’s a prepaid debit card that allows you to receive payments electronically, and it doesn’t require a bank account.
Digital Wallets: While digital wallets like PayPal or Venmo are less common, they may also be an option depending on the SSA’s guidelines.
You may receive email instructions from the SSA on how to make the switch. However, don’t wait until the last minute. If you miss the September 30 cutoff, your October payment could be delayed—creating potential financial hardship, especially for those who live paycheck to paycheck.
Exceptions to the Rule
There are limited exceptions to the digital payment rule. For example:
Disaster relief payments (like FEMA checks) may still be issued as paper checks.
Individuals who have no access to banking or electronic systems may qualify for a waiver.
However, these exceptions are narrow and will not apply to most beneficiaries.