Social Security is among the federal government payments that are swapping out paper checks for electronic payments this week to push “operational efficiency.”
President Donald Trump signed an executive order on March 25 to phase out paper checks, which went into effect on Tuesday. A small portion of Social Security recipients are affected by this change, as less than 1% receive their benefits via paper checks.
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The executive order spotlights various drawbacks to paper checks, such as liability to theft, fraud, delays, and other problems. Mail theft specifically spiked during the COVID-19 pandemic.
The Social Security Administration told the Washington Examiner it is contacting beneficiaries to inform them of the change and enroll them in receiving direct deposits or Direct Express cards. The SSA also said electronic fund transfers are cheaper than paper checks, as the former costs less than $0.15 while the latter costs about $0.50.
“Where a beneficiary has no other means to receive payment, we will continue to issue paper checks,” an SSA spokesperson told the Washington Examiner in an email.
SSA beneficiaries who need to update their payment information can do so online using their personal Social Security accounts.
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The SSA’s Supplemental Security Income payment, worth up to $967, is being issued on Wednesday. Meanwhile, couples filing together can receive $1,450.
Next week, October’s first Social Security payment for retirees aged 62 and older will go out on Oct. 8, and the second and third payments will follow on a weekly basis.