The Social Security Administration will cease issuing paper checks starting September 30, 2025, transitioning beneficiaries to electronic funds transfers (EFTs) to enhance efficiency and security. EFTs ensure quicker payments and are more secure than checks, which have a higher theft rate. The switch will also save costs for the federal government, reducing mailing expenses significantly. While less than 1% of recipients still receive paper checks, alternatives include direct deposit and Direct Express cards for those without bank accounts. Some populations, particularly marginalized groups, may face challenges adapting to this change.
The Social Security Administration will officially stop issuing paper checks, transitioning to electronic funds transfers starting September 30, 2025, to improve efficiency and security.
Beneficiaries will receive electronic payments quicker than traditional checks, which are 16 times more likely to be stolen or lost.
Transitioning to electronic payments will save federal costs as mailing a paper check costs about 50 cents compared to under 15 cents for EFTs.
Less than 1% of recipients currently receive paper checks, with alternatives like direct deposit and Direct Express cards available for the remaining beneficiaries.
#social-security-administration #electronic-payments #financial-security #beneficiary-impact #unbanked-households
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