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Social Security Confirms Change in Payment Methods – Half a Million Americans Will Be Affected

G3 Newsby G3 News
03/28/2025 13:00

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Approximately half a million Americans will experience a significant change as a result of President Trump’s order that will Social Security payments by paper check. It is important to note that the goal of this change is to modernize the systems however it does raise concern about how it affects the vulnerable population.

The movement: From paper checks to digital payments

As of September 30, 2025, the Federal Government will stop issuing paper checks for Social Security payments. Beneficiaries will now need to switch to direct deposit, prepaid cards or other digital payment options. However, a few exceptions may be on the card for those who do not have bank accounts, but these changes are being made in efforts to prevent fraud and inefficiencies in government departments.

Who will this affect?

Approximately 456,000 Americans (0.7%) of the total 68.2 million Social Security recipients, still utilise paper checks, nationwide. These people may find it difficult to adjust to the new payment methods since they are frequently older and less accustomed to digital systems. However, the use of paper checks poses unnecessary costs as well as the increased risk of fraudulent activities.

A concern for vulnerable populations

This change is being implemented when the Social Security system is slacking back on telecommunication services, which are essential for assisting recipients with the transition. Many critics argue that these changes could interfere with the financial stability of beneficiaries who depend on Social Security payments as a primary source of income.

Why the change?

In order to maintain the paper-based payments, the administration stated that it costs over $657 million in the 2024 financial year.  Additionally, paper checks contribute to fraud, theft and inefficiencies.

Being ready for the change

Social Security beneficiaries must ensure that they act quickly to set up their direct deposits alternatively, they must explore other digital payment options. Should any beneficiaries require additional information, such is available on the Social Security website.

Social Security Direct Deposit

If you have a bank account and currently receive Social Security or SSI benefits, you can enroll in Direct Deposit by:

– Calling your bank, credit union, or savings and loan association, or initiating or modifying Direct Deposit online (only for Social Security income),

– Contacting the Social Security Field Office in your area or by phone at 1-800-772-1213 (TTY 1-800-325-0778).

Another option is to apply for a Direct Express debit card. You may use the Direct Express card, a debit card that doesn’t require a bank account, to access your benefits.

Your government benefit payment is deposited straight into your card account when you use the Direct Express card service. On the day of your payment, you will always have access to your monthly benefits on time. The card may be used at thousands of sites to pay bills, make purchases, or obtain cash.

Moving forward

The recent announcement from the SSA to change from paper checks to digital payments marks an important shift toward the technological advancements of the 21st century. This will indeed impact approximately half a million Americans, however this change aims to see a positive stance toward a brighter future. As of 30 September 2025, beneficiaries will be required to switch to digital payment methods. This shift aims to decrease government spending as well as fraudulent activities that occur within the department, however it has indeed raised eyebrows for vulnerable populations, such as retirees and disabled citizens. The group of individuals who rely on paper checks may not have access to online banking systems and this may be a challenge.

Additionally, the change clashes with mitigation of phone services, beneficiaries rely on this for assistance. Advocates are also concerned about the lack of support systems that could interfere with the financial stability of those who depend on social security payments as their primary source of income.

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