The Social Security Administration (SSA) will stop issuing paper checks at the end of this month, in a change that affects hundreds of thousands of beneficiaries across the U.S.
The shift follows months after President Donald Trump issued an executive order in March mandating all federal payments be made electronically beginning Sept. 30, through means including direct deposit and credit cards. Paper-based payments are more costly and vulnerable to fraud, theft, errors and delays, according to the White House.
SOCIAL SECURITY TO PHASE OUT PAPER CHECKS NATIONWIDE AS TRUMP PUSHES PAYMENT OVERHAUL
“Less than one percent of Social Security Administration beneficiaries currently receive paper checks,” an SSA spokesperson told FOX Business in an email. “… Where a beneficiary has no other means to receive payment, we will continue to issue paper checks.”
As of September, more than 68 million Americans across all 50 U.S. states and territories receive Social Security benefits. Of that number, around 390,000 people, or about 0.6%, are receiving check payments, according to data from the SSA.
The SSA is actively contacting those beneficiaries to notify them of the change as well as the process to shift to electronic payments before Sept. 30, the spokesperson told FOX Business.
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Some exceptions will be made, including in emergency situations and for those without access to digital payment systems or banks, according to the White House.
Sending paper checks is around 50 cents, compared to less than 15 cents for an electronic funds transfer. Paper checks are also sixteen times more likely to be lost or stolen, according to the SSA.
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In fiscal year 2024, it cost American taxpayers more than $650 million to maintain the technology and infrastructure needed to process paper records, according to the White House.
“Reducing paper checks has been a longstanding bipartisan goal that our administration is finally putting into action,” Treasury Secretary Scott Bessent said in a statement last month. “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.”
To update payment information, Social Security recipients can find more information on the SSA’s website.
The White House and the U.S. Treasury did not immediately respond to FOX Business’ request for comment.
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