Starting September 30, 2025, the U.S. federal government will officially stop issuing paper checks for nearly all payments—including Social Security, SSI, Veterans benefits, and tax refunds. This shift to electronic payments is meant to modernize federal disbursements.
Why Stop Paper Checks?
- Cost Efficiency: Paper checks cost taxpayers about 50 cents each, compared to under 15 cents for electronic payments.
- Better Security: Paper checks are 16 times more likely to be lost or stolen than electronic transfers.
- Faster Delivery: Electronic Funds Transfers (EFTs) eliminate mail delays and ensure timely deposits.
Who Will Be Affected?
| Group | Current Payment Method | Now Required to Switch To |
|---|---|---|
| Social Security (≈68M recipients) | Majority via EFT; ~500,000 by check | Direct Deposit or Direct Express Debit Card |
| SSI, Veterans, Tax Refund Recipients | Some still on paper | Same as above |
- Less than 1% of Social Security beneficiaries—roughly 500,000 people—still receive paper checks, usually older or unbanked individuals.
- Exceptions may be granted logically—for instance, in emergencies or if recipients lack any access to banking services.
What You Need To Do
If you still receive paper checks, you must switch to an electronic method by Sept 30, 2025:
- Enroll online via GoDirect.gov to set up direct deposit or the Direct Express® card.
- Or contact your benefit agency directly or call the Electronic Payment Solution Center at 1-800-967-6857.
- No bank account? Use FDIC’s GetBanked or MyCreditUnion.gov to open one—no fees or credit required. Alternatively, opt for a Direct Express® Debit Mastercard®
Why This Matters
- Improved Safety & Speed: Electronic payments are secure and arrive promptly.
- Avoid Disruption: Over 485,000 recipients—many older or rural—are at risk of losing benefits without updating their payment method.
- Government Savings: This initiative is expected to save millions annually while reducing fraud and inefficiency.
The end of paper checks for Social Security and other federal benefits is fast approaching. With less than 1% of recipients affected, this is your last chance to switch to a secure and efficient electronic method.
Whether it’s direct deposit or the Direct Express® card, make the change before September 30, 2025, to ensure uninterrupted delivery of your benefits—safely and reliably.
