US EditionCashing in on change: paper checks from US government ending by October
The Treasury Department aims to save over $657 million annually by ending paper checks to reduce fraud and modernize federal benefit payments, affecting less than 1% of Social Security recipients.
- On September 30th, the U.S. Department of the Treasury will stop issuing paper checks, requiring Social Security Administration recipients to switch to direct deposit or the Direct Express prepaid debit card.
- Earlier this year, an executive order signed March 25 directs modernization of the government's general fund and mandates moving federal benefits to electronic payments by Sept. 30, with officials citing costs of over $657 million in fiscal 2024.
- Most beneficiaries already receive payments electronically, with over 97% of Veterans Administration payments delivered this way; paper checks cost about 50 cents, while electronic funds transfers cost less than 15 cents.
- Treasury officials say waivers will be available in rare cases for beneficiaries with hardships, while agencies increase outreach through mailings, emails and call-center scripts and limited exceptions remain for those without banking access.
- About 5.6 million unbanked households face challenges as banks' check-fraud reports surged to about 680,000 in 2022, with Treasury checks 16 times likelier to be lost or stolen than electronic payments.
19 Articles
19 Articles
Deadline Nears for Federal Benefits to Go Electronic; Some Social Security Paper Checks Will Continue
Most federal benefit payments will shift to electronic delivery at the end of this month, but Social Security officials say paper checks will not disappear entirely. Under an executive order signed by President Donald Trump in March, the Treasury Department and other agencies must phase out paper checks by Sept. 30 in favor of direct deposit, prepaid cards, and other electronic methods. The change is intended to reduce fraud, improve efficiency,…
500,000 Social Security Recipients Are in for Another Change in October, and It May Not Be a Bad Thing @themotleyfool #stocks
Key PointsBeginning Sept. 30, the Social Security Administration (SSA) will stop sending paper checks to recipients. For those who don't have a checking account and need time, the SSA says there will be exceptions made.Beneficiaries can choose between depositing into their bank account or onto a Direct Express Mastercard. The $23,760 Social Security bonus most retirees completely overlook › Beginning Sept. 30, the Social Security Administration …
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