The Social Security Administration (SSA) announced that it will stop issuing paper checks starting September 30. Social Security and other welfare recipients are requested to quickly apply for electronic transfers.
The Social Security Administration announced the “full paperless” policy on the 14th, stating that “the development towards full electronic transfer is aimed at improving efficiency, enhancing security, and ensuring that welfare recipients receive their money on time every month.”
The Social Security Administration said that less than 1% of recipients have received checks so far. Please log in to the direct transfer account number online or apply for a “Direct Express” debit card as soon as possible before the end of September to receive the amount you deserve every month.
Those who still receive checks every month will receive a letter notifying them of the change to electronic transfers, which will detail the method of change. Regardless of the type of welfare check, there is a way to change to electronic transfers.
The Social Security Administration emphasized that checks will stop being issued starting September 30, 2025, and all payments will be made electronically. Check recipients must open an electronic receipt and payment account.
The Social Security Administration said that the benefits of stopping the issuance of checks and switching to electronic payments are that delays will be minimized and fraud can be reduced.
The Treasury Department estimates that after switching to electronic payments, the processing cost of each check can be saved by 35 cents, and the government can save millions of dollars each year.
The probability of paper checks being lost or stolen is 16 times higher than electronic payment operations. Electronic payments are obviously safer and more secure.
These users can go online and register their electronic payment account number from their personal account on the my Social Security website.
If you need help, Social Security Administration technicians can provide guidance from 7:30 a.m. to 4 p.m. Eastern Time Monday to Friday.
In addition, people who over-receive Social Security benefits will receive half of the Social Security benefits starting at the end of July. The Social Security Administration announced in April that 50% of the amount of money that should be issued to over-receivers will be deducted until the over-receipt is deducted. The method proposed by the Social Security Administration in March was to deduct the full amount until all the over-receipts were recovered, but fearing that it would have too much impact on the lives of some people, it changed to deduct half of the monthly benefits.
In the past, the monthly deduction for overpayment was only 10%. The reason for the low rate is that there were a lot of negative news in 2023, reporting that the monthly deduction amount was too high, causing many people to be unable to pay their mortgages, their houses were repossessed by banks, and they became homeless. The then director Martin O’Malley said, “Many people are innocent, but they have suffered heavy losses.”
