Uncle Sam is pulling the plug on paper checks. Are you ready?
Come Sept. 30, 2025, roughly half a million Americans who still receive their Social Security or Supplemental Security Income (SSI) the old-fashioned way — by mail — will need to find a new way to get paid.
That’s because the Social Security Administration (SSA) will stop issuing paper checks altogether.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵
If you’re one of the dwindling number of beneficiaries clinging to checks, it’s time to prepare — or risk a delay in getting your money.
Why the SSA is making the move
This isn’t exactly new. The push to modernize federal benefit payments dates back more than a decade. In fact, the requirement for electronic delivery has been on the books since 2011. What’s new is the deadline.
Thanks to Executive Order 14247, signed in March 2025, the Treasury Department has been directed to halt all paper check disbursements — not just for Social Security, but across virtually all federal payments — by the end of September 2025.
So why the final push now?
Related: Millions of Medicare beneficiaries could see major price shock
According to a blog post by the SSA, the move to 100% electronic payments will help improve efficiency, reduce costs, and strengthen security. National Social Security Advisors President Travis Stanley sees it as part of a broader effort to trim costs amid growing fiscal pressure on the program.
“I believe this is a continuation of the Administration’s cost cutting efforts,” Stanley said. “In addition to reducing staff size by 10%, they continue to look at any and all measures to offset costs to the program. The recent trustees report stated that the shortfall for Social Security was estimated to be $25.1 trillion over the next 75 years. While administering the program is a relatively small expense, any reduction in costs will help.”
There are plenty of good reasons for the change, according to the SSA:
- Speed and efficiency: Electronic payments are processed faster, helping beneficiaries receive their money on time.
- Security: Paper checks are 16 times more likely to be lost or stolen compared to electronic payments.
- Savings: Each paper check costs the Treasury about 50 cents to process, compared to less than 15 cents for an electronic funds transfer. That adds up to millions in potential savings.
Who’s affected by Social Security change and what to do now
According to SSA estimates, fewer than 1% of all beneficiaries still receive paper checks. But that 1% represents roughly 500,000 people — and possibly 20,000 or more who don’t have bank accounts.
For those individuals, there’s an alternative.
“I believe the only option moving forward is going to be for people to sign up for Direct Express,” said Stanley. “It’s a debit card that is automatically loaded with a person’s Social Security benefits monthly.”
The Direct Express card is designed for federal benefit recipients who are unbanked.
It’s a prepaid debit card that allows users to make purchases, withdraw cash, and track balances — much like any other debit card.
Jim Blankenship, a certified financial planner with Blankenship Financial Planning, said the shift makes sense.
Related: Retired workers to see frustrating change to Medicare in 2026
“I think it’s just the way of the world nowadays,” he said. “Paper checks are the exception rather than the rule for most payments… I imagine the savings figures touted are inflated somewhat, but certainly use of electronic transactions is bound to be more cost-effective in the long run.”
For those considering the Direct Express option, Blankenship advises caution.
“Users of any sort of debit card need to understand that they should take extra precautions with the card to ensure that it isn’t compromised,” he said. “More so than with a credit card, which has significant inherent protections built-in.”
He noted that while the Direct Express card includes fraud protections similar to those offered by standard bank debit cards, it does have its limitations.
“You’re limited to the funds actually available in the account,” Blankenship said. “There is no credit line included. And purchases are directly debited from the balance, either immediately or within a day or two. There’s no grace period like you have with credit cards.”
Also, transaction fees — especially ATM withdrawal fees — can add up. “Depending on the method used, ATM fees, for example, can be significant,” he added.
What SSA is doing and how to prepare
SSA says it’s not leaving beneficiaries in the lurch. The agency is proactively sending notices to current paper-check recipients, including inserts with their benefit checks explaining how to switch. Technicians are also available to help walk people through their options.
Beneficiaries have two main choices:
- Direct deposit: The preferred method. Enroll with your financial institution to receive benefits straight into your checking or savings account.
- Direct Express® card: For those without a bank account, this prepaid card offers a viable — though not perfect — alternative.
To sign up or update your payment method, visit www.ssa.gov/deposit or log into your My Social Security account.
As Blankenship put it: “The Direct Express option has been around for quite some time — maybe 15+ years — without any significant issues that I’ve noticed.”
Still, if you’re among the 1% still receiving paper checks, now’s the time to act — before the check is no longer in the mail.
Related: Young workers face stark Social Security reality
