Some Americans who still receive Social Security benefits by paper check will need to switch to electronic payments as the federal government completes its move away from paper-based disbursements.

The Social Security Administration (SSA) said in a blog post published Tuesday that it plans to fully transition beneficiaries to electronic payments this year. The change follows Executive Order 14247, signed by President Donald Trump in 2025, which directed federal agencies to modernize payments and move away from paper checks where permitted by law.

The policy affects Social Security benefits as well as certain federal payments issued by the Department of Veterans Affairs and the Internal Revenue Service.

How The Change Works

The agency said beneficiaries who still receive paper checks should switch to direct deposit or another electronic payment method as soon as possible. Those without bank accounts can receive benefits through the Direct Express prepaid debit card program. Individuals who cannot make the transition may request a waiver through the Treasury Department.

According to the SSA, fewer than 1% of beneficiaries, or about 280,000 people, still receive paper checks. The agency said paper checks are 16 times more likely to be lost, stolen, altered, or returned as undeliverable than electronic payments. The Treasury Department estimates that each paper check costs more than $3 to process, roughly 20 times the cost of an electronic payment.

“This shift could save the federal government millions annually,” the agency said in Tuesday’s announcement.

Broader Digital Push

The Social Security change is part of a broader federal effort to digitize government services and payments.

In April, the IRS expanded access to its online Business Tax Account platform, allowing millions of additional entities to access tax records, make payments and receive notices digitally. The agency said the move supports the federal government’s push toward electronic administration and reduces reliance on paper-based interactions.

The transition also comes as many retirees remain heavily dependent on Social Security income. Recent research from AARP found that 61% of older Americans believe the average Social Security benefit of about $2,000 per month is not enough, while 69% said prices are rising faster than their income.

The SSA said beneficiaries can update their payment information through their online Social Security accounts or through their financial institutions.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock