Hundreds of thousands of Social Security recipients who still receive paper checks will need to transition to electronic payments as the federal government moves forward with a long-planned modernization effort. The change follows an executive order requiring most federal payments to be delivered electronically.
The policy affects a range of federal disbursements, including Social Security benefits, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and tax refunds. While most beneficiaries already receive payments electronically, those who continue to rely on mailed checks may need to update their payment method to avoid disruptions.
According to reports, the transition is tied to Executive Order 14247, signed by President Donald Trump in March. The order directs federal agencies, including the Social Security Administration (SSA), to use electronic payment systems wherever possible and largely end the use of paper-based disbursements after September 30, 2025.
Federal Agencies Move Away From Paper-Based Payments
The executive order is part of a broader effort to reduce the federal government’s dependence on paper payment systems. Under the policy, agencies are expected to distribute funds through electronic methods such as direct deposit, prepaid and debit cards, digital wallets, and real-time payment systems.
The Trump administration said the move is intended to reduce costs, improve efficiency, and strengthen protection against fraud and improper payments. According to the executive order, federal agencies spent more than$657 million during fiscal year 2024 maintaining systems used to process paper records and payments.
The SSA has also highlighted security concerns linked to paper checks. In a recent agency blog post, officials stated that paper checks are “16 times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments.”
Cost has also been cited as a factor behind the transition. According to Treasury Department data referenced by the SSA, printing and mailing a paper check costs an average of $3.07, while the cost of sending an electronic payment is substantially lower.
The policy extends beyond Social Security. According to reports, The Internal Revenue Service is also implementing the executive order’s electronic payment requirements, including for federal tax refunds.
Exceptions Remain Available for Some Beneficiaries
Although electronic payments will become the standard method, the executive order includes provisions for limited exemptions. Individuals who do not have access to banking services or electronic payment systems may qualify for waivers.
Additional exemptions may be granted in emergency situations, as well as in certain law-enforcement or national-security cases. Other exceptions may also be approved by the Treasury Department under specific circumstances.
The SSA has indicated that some beneficiaries living in remote locations, or facing challenges related to mental health or limited access to financial institutions, may also be eligible to request exceptions.
For recipients who need to make the switch, the agency is encouraging action before the deadline. Beneficiaries can enroll in direct deposit through a My Social Security account by entering their banking information. Financial institutions, including banks and credit unions, can also submit direct-deposit details electronically on behalf of customers.
For those without a traditional bank account, benefits may be deposited onto a Direct Express prepaid debit card. The SSA says completing the transition before the requirements take effect can help ensure payments continue arriving on schedule and without interruption.
