Courtesy of fbi.gov

The federal government will stop issuing paper checks for Social Security, veterans’ benefits, tax refunds, and most other programs at the end of this month, requiring millions of Americans to move to electronic payments.

The shift, required under Executive Order 14247, begins on Sept. 30. 

“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” Treasury Secretary Scott Bessent stated. “Thanks to President Trump, this will help reduce fraud and theft. It will also remove delays that prevent hardworking Americans from receiving their vital payments.”

While most beneficiaries already use electronic transfers, more than 5 million still receive paper checks, including seniors, people with disabilities, and those without bank accounts.

Beneficiaries can choose between direct deposit into a bank or credit union account or the Direct Express debit card, a Treasury-sponsored card for those without accounts. Enrollment is available through GoDirect.gov, by calling 1-800-967-6857, or through the agency that issues payments.

Jennifer Tescher, founder of the Financial Health Network, warned that the deadline could create problems for vulnerable groups. 

“Populations that may be more challenged by having to change the way they receive their federal benefits include older adults, immigrants, and people with disabilities,” Tescher stated.

Kathleen Romig, a former Social Security Administration official now with the Center on Budget and Policy Priorities, described her experience trying to enroll. 

 

Paper checks cost about 50 cents to issue compared with less than 15 cents for electronic transfers. Officials contend that fraud concerns are also driving the change, with banks reporting nearly 680,000 cases of check fraud in 2022, nearly double the year before.

Waivers will be available only in limited cases, including for people 90 and older, those in remote areas, or individuals with certain disabilities. Beneficiaries seeking an exemption must call 1-800-967-5042.

A spokesperson for the Social Security Administration said the agency is contacting those who still receive paper checks.

“Where a beneficiary has no other means to receive payment, we will continue to issue paper checks,” the spokesperson stated.