Something that has become a part of lifestyle might be difficult to adjust to when there is a change. For many years, millions of Americans have gotten so used to Social Security paper checks coming in their mail every month.
However, just like everything in the world is changing and evolving, so is Social Security. The Social Security Administration (SSA) has drifted away from sending out paper checks. Now, Social Security benefits will be paid via direct deposits or prepaid debit cards.
Why Paper Checks Are Gone
The reason that the SSA has decided to end paper checks is to save money, reduce fraud and improve efficiency. It was concluded that the cost of printing and sending out paper checks to millions every month, was not feasible. In addition to this, paper checks were sometimes delayed, lost or even stolen.
The SSA then made the decision to switch to electronic payment methods. This will allow payments to arrive in a safe and efficient manner. Payments will now be sent out via direct deposit or the Treasury Department will offer a Direct Express® Debit Mastercard® for those who don’t have direct deposit accounts.
As much as this change is meant to make things more efficient, it creates issues for individuals who aren’t inclined to technology.
What This Change Means for You
- You’ll need either a checking account or a government-issued card to access your money.
- If you’re not used to online banking, ATMs and debit cards, you may feel overwhelmed by the new method.
- Electronic payments are safer in many ways, but phishing scams, card fraud, and identity theft are real threats.
- As a result of automatic deposits, people may lose track of spending.
Steps You Must Take to Stay Prepared
You don’t have to get stressed out upon hearing the end of paper checks, you just need to make a few adjustments, so this works well for you:
- Choose Your Payment Method Wisely
- Direct Deposit: If you have a bank or credit union account, direct deposit is the safest and most convenient option.
- Direct Express® Card: This prepaid debit card allows you to access your money at ATMs, retail locations, and online if you don’t want or are unable to open a bank account.
- Learn the Basics of Digital Banking
It can be very beneficial to know how online banking work. Consult with your bank and ask for help or even ask a trusted family member for assistance. This will serve you well in the long run.
- Guard Against Scams
Be very mindful of scams as scammers and criminals target Social Security recipients. Always remember that SSA will never ask you for money or threaten to cut your benefits.
- Keep a Paper Trail
You can still request bank statements to keep track of your benefits. This will assist you with budgeting and financial planning.
- Plan for Emergencies
What happens if your bank freezes your account or if your debit card is stolen or lost? Always have a little amount of cash on hand for necessities.
Looking Ahead
The end of paper checks shows that the SSA is trying to improve operations and make things more efficient for beneficiaries. Even though the change may be difficult to adapt to, utilising the information available and planning ahead will greatly assist you. Make sure you understand the payment options and are aware of way to protect yourself from fraud.
Final Thoughts
The 30th of September is the last day for paper checks, but you may request a waiver. However, this waiver will only be granted at discretion of the Treasury Electronic Payment Solution Centre, and that too, under certain circumstances (you must meet one of the two requirements):
- Mental impairment. You have a verified and documented mental disability that makes it difficult to deal with electronic payments.
- Remote location. You’re living in a remote area and do not have access electronic banking.
Be sure to stat updated so that you are aware of the changes and your options!