Social Security Transition to Electronic Payments - What Beneficiaries Receiving Paper Checks Need to Know
The transition from paper checks to electronic payments offers several important advantages:
- Speed and Efficiency: Electronic Funds Transfers (EFTs) are processed more quickly than paper checks, helping beneficiaries receive their payments on time without delays.
- Cost Savings: According to the U.S. Department of the Treasury, issuing a paper check costs about 50 cents, whereas an EFT costs less than 15 cents. This shift could save the federal government millions of dollars annually.
- Enhanced Security: Paper checks are 16 times more likely to be lost or stolen compared to electronic payments, increasing the risk of fraud. Electronic payments provide a safer, more secure way to receive benefits.
People who currently receive paper checks have two convenient options to receive their Social Security payments electronically:
- Direct Deposit: Beneficiaries should enroll in direct deposit with their financial institution. Payments can be deposited directly into your checking or savings account.
- Direct Express® Card: For people without a bank account, the Direct Express card is a prepaid debit card designed specifically for federal benefit payments.
