The Social Security Administration (SSA) will stop sending paper checks at the end of this month, a change that will impact hundreds of thousands of people across the country.
The move comes after President Donald Trump issued an executive order in March requiring all federal payments to be made electronically starting Sept. 30. Payments will now be handled through direct deposit or credit cards. According to the White House, paper checks are more expensive and more likely to be lost, stolen, or delayed.
“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 in all 50 states and territories receive Social Security benefits. Out of that number, about 390,000 people, or roughly 0.6%, still get paper checks, according to SSA data.
The SSA has been contacting those beneficiaries to explain the change and help them switch to electronic payments before the Sept. 30 deadline, the spokesperson added.
Some exceptions will remain, such as emergency cases and for people who do not have access to digital payment systems or banks, according to the White House.
Sending a paper check costs about 50 cents, while an electronic transfer costs less than 15 cents. Paper checks are also 16 times more likely to be lost or stolen, the SSA says.
In fiscal year 2024, maintaining the systems needed to process paper records cost taxpayers more than $650 million, 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.”
Recipients can update their payment information through the SSA’s website.
The White House and the U.S. Treasury did not immediately respond to FOX Business’ request for comment.
